AF Legal Posts 27% Revenue Growth and $1.4M Normalised Profit in FY25

Strong Financial Performance Amid Strategic Expansion

AF Legal Group has delivered its strongest financial year to date, reporting a 27% increase in revenue to $27.6 million for FY25. This growth was driven by both organic expansion and the integration of recent acquisitions, notably the Armstrong Legal Contested Wills and Estate team and the Armstrong Legal Criminal and Family Law teams acquired in late 2024. The firm’s average weekly revenue in the final quarter reached a record $605,000, underscoring accelerating momentum.

Normalised profit before tax attributable to owners surged 77% to $1.4 million, marking five consecutive profitable halves since mid-2023. Despite this, statutory results were impacted by one-off costs related to acquisition expenses, the ongoing Project Titan initiative, and legal defence fees tied to regulatory matters. These adjustments have been excluded from the normalised figures to better reflect underlying operational performance.

Acquisitions and Operational Initiatives Fuel Growth

The Armstrong Legal acquisitions have been pivotal, expanding AF Legal’s footprint into complementary practice areas and new geographic markets including NSW, Victoria, Queensland, and the ACT. The firm has also focused on strengthening its Family Law division nationally, achieving notable revenue growth and reducing staff turnover through targeted recruitment and internal development, highlighted by 20 promotions in mid-2025.

Project Titan, a major cloud-based system upgrade incorporating AI functionality, is progressing on schedule and within budget. Expected to go live in the second half of FY26, this initiative aims to drive margin efficiencies and streamline workflows, positioning AF Legal for scalable growth.

Balance Sheet and Cash Flow Reflect Strategic Investments

The balance sheet reflects the impact of the $2.5 million borrowings used to fund the second Armstrong Legal acquisition, with a final earnout payment of $375,000 due in FY26. Strong debtor management and cash collection efforts have resulted in a $2.9 million net cash inflow from operating activities, a $2.3 million improvement over the prior year, supporting the firm’s financial stability amid expansion.

While some receivables are tied to long-term estate and family law matters, AF Legal’s robust agreements and asset protections mitigate concerns over recoverability. The firm’s cautious approach to managing these receivables reflects prudent financial governance.

Positive Outlook with Continued Growth and Efficiency Gains

Looking ahead, AF Legal anticipates further revenue growth and operating leverage in FY26, supported by early indications of average weekly revenue climbing into the mid $600,000 range. The firm plans to continue expanding its legal teams in line with lead generation and conversion momentum, while also exploring additional merger and acquisition opportunities to scale its operations.

Internal culture improvements have been significant, with employee approval ratings rising from 53% to 84% in recent surveys, reinforcing AF Legal’s commitment to being a people-first, practice-led organisation. This cultural shift is expected to underpin sustainable growth and operational excellence.