HSF Kramer closed its first fiscal year as a merged firm with revenues of $2.4 billion (£1.8 billion) and a profit of $850.8 million (£633.9 million). Profit per partner (PEP) was $2.1 million (£1.5 million), a figure the firm itself notes is not directly comparable with the previous results of its two constituent companies due to the different fiscal years and the reporting methodology inherited from Kramer Levin.
The reference period, from May 1, 2025, to April 30, 2026, incorporates the full 12-month performance of the former Herbert Smith Freehills and 11 months of the former Kramer Levin. The resulting PEP falls between the figures reported separately by both firms in their final fiscal years before the merger: 7% above the £1.4 million reported by Herbert Smith Freehills in its 2025 fiscal year, and 12.5% below the $2.4 million reported by Kramer Levin in 2024, the lower of the two firms.
Justin D’Agostino, global CEO of HSF Kramer, stated that the combined firm’s transatlantic and transpacific capabilities “have propelled us into a new league.” He added, “We always believed that the merger of Herbert Smith Freehills and Kramer Levin would be a perfect match, but the success of the integration has far exceeded our expectations.” D’Agostino further noted that the firm surpassed its financial targets for the year, with synergy revenues more than doubling the target set at the time of the merger, and that growth was widespread across regions, with double-digit increases in Asia and EMEA and “another very strong year” in the UK.
Additions and growth priorities
The firm added 51 new partners globally during the year, 15 of them in the United States, through external hires and a round of 25 internal promotions. Among the most notable additions were Burr Eckstut, formerly of White & Case, who joined in New York to lead the US technology transactions practice, and three mergers and acquisitions partners from Paul Hastings, also in New York.
Looking ahead to the next fiscal year, HSF Kramer will focus its growth on energy, private equity, class action defense, and restructuring and special situations, with a particular emphasis on global funds, pension capital, and infrastructure investors. In the United States, the firm will seek to expand its energy and infrastructure offering in Texas, its litigation and appeals teams in Washington, D.C., and its technology platform in Silicon Valley.
In the area of artificial intelligence, the firm launched Legora across the organization and in October brought on Ilona Logvinova in New York as its first global director of AI.
Earnings season in the legal sector
HSF Kramer joins a long list of firms that have released their annual reports in recent weeks. Clifford Chance reported revenues of £2.6 billion (+9%) and PEP of £2.3 million (+9%), marking its fourth consecutive year of growth . CMS reported revenues of €2.173 billion, up 4.8%. DLA Piper saw its PEP jump 19.6% to $4.14 million, with revenues of $4.6 billion. A&O Shearman maintained stable revenue at $3.7 billion, but increased its profit per partner by 12% to $2.9 million. Bird & Bird reported revenue of €702 million (+4%), although its PEP fell by 1.5%. Fieldfisher closed with £398 million (+4%) and a PEP of £975,000, 3% lower than the previous year.
