Leverage is rising while the equity layer is being protected

Citi Hildebrandt reports 2.9% headcount growth, a 0.5% decline in equity partners, 6% income-partner growth and a 4.3% leverage increase through the first nine months of 2025. The economics are clear: firms are expanding salaried capacity and income-partner layers while using equity more selectively, which heightens the need for sharper matter staffing and profitability discipline.