Midsize firms face quiet rate erosion despite solid demand

TRI’s Q1 2026 LFFI analysis shows midsize demand growth of 2.6%, roughly in line with the market, but worked-rate growth of only 5.3% versus 9.8% for the Am Law 100. The economics problem is compounding: midsize firms are producing demand, but their revenue per hour is growing at roughly half the pace of the largest firms while direct expenses rise faster.