AF Legal Posts $27.6M Revenue and $1.4M Normalised Profit in FY25
AF Legal Group has reported a strong FY25 with 27% revenue growth and a 77% increase in normalised profit, driven by strategic acquisitions and operational improvements.
- 27% revenue growth to $27.6 million in FY25
- Normalised NPBT attributable rises 77% to $1.4 million
- Two Armstrong Legal acquisitions expand criminal, family, and wills practices
- Average weekly revenue surpasses $600k in Q4 FY25
- People-first culture and Project Titan cloud platform underway
Strong Growth Momentum
AF Legal Group Limited has delivered a robust financial performance for FY25, posting a 27% increase in revenue to $27.6 million compared to the previous year. This growth was underpinned by both organic expansion and the strategic acquisition of Armstrong Legal’s criminal and family law practices in October 2024. The firm’s average weekly revenue exceeded $600,000 in the final quarter, marking a new high and signaling sustained momentum heading into FY26.
Underlying profitability also improved markedly, with normalised net profit before tax attributable to owners rising 77% to $1.4 million. This reflects the company’s operating leverage model starting to deliver stronger returns as revenue scales faster than costs.
Acquisitions Fuel Expansion and Diversification
The acquisitions of Armstrong Legal’s contested wills and estates practice in April 2024, followed by the criminal and family law practices in October 2024, have broadened AF Legal’s service offering and geographic footprint. These moves complement the company’s core family law business and open new regional markets including Adelaide, Tasmania, and Townsville. The integration of these practices contributed to a 14% revenue uplift in the first comparable quarter post-acquisition.
Alongside acquisitions, AF Legal has expanded its legal teams by 20% and other fee earners by 30%, supporting higher client capacity and service delivery. The firm’s focus on a people-first culture, with enhanced professional development and autonomy for practice leaders, aims to sustain this growth trajectory.
Operational Improvements and Technology Investment
AF Legal is advancing its operational efficiency through Project Titan, a new cloud-based practice management and document management system expected to be fully rolled out by early Q4 FY26. While Project Titan incurred $268,000 in costs during FY25, the investment is anticipated to streamline workflows and improve client service, ultimately supporting profitability.
Cash flow remained strong with operating inflows of $2.9 million, though acquisition-related outflows and borrowings impacted overall cash balances slightly. The company’s debt facility with NAB has been extended to January 2027, providing financial flexibility for ongoing expansion.
Looking Ahead
AF Legal’s strategy combines organic growth through team expansion and new office locations with targeted acquisitions in complementary legal areas. The firm is also enhancing client engagement through digital marketing and feedback initiatives. With a solid foundation of revenue growth, improving profitability, and a culture focused on people and performance, AF Legal is positioned for continued momentum in FY26 and beyond.
Bottom Line?
AF Legal’s FY25 results set the stage for further growth, but successful integration of acquisitions and Project Titan’s rollout will be key to sustaining momentum.
Questions in the middle?
- How will Project Titan’s ongoing costs affect profitability in FY26 and beyond?
- What are the risks and timelines associated with integrating Armstrong Legal’s practices?
- Can AF Legal maintain its revenue growth pace amid increasing competition in family and criminal law?
