Advisors achieve record growth and profitability in 2024, reveals latest IN Advisor Benchmarking Study

US financial advisory firms posted one of their strongest years on record in 2024, with rapid gains in assets, revenues, and profitability fueled by favorable economic conditions, rising markets, and operational transformation. 

As the industry’s longest-running independent survey of advisory firms, the 2025 Advisor Benchmarking Study offers unparalleled insight into how practices are performing and evolving in a rapidly shifting financial landscape. The results mark a major evolution for the industry as firms transition from post-pandemic recovery to a new era of scale and efficiency. 

Key findings from the 125-page report include: 

• Strong AUM and revenue growth: Firms grew AUM by an average of 20.6 percent, marking a return to pre-pandemic levels, driven by market appreciation and mergers and acquisition (M&A) activity. Median firm revenues also climbed 30.5 percent, boosted by a recovering bond market and a rebound in client acquisition – net new client relationships grew 15.2%, compared to just 3.5% the year prior. 
• Profitability leadership: Advisory firms posted median operating margins of 27.8 percent, nearly double those of US accounting (16.2 percent) and law firms (10.6 percent), underscoring the sector’s resilience. Billion-dollar advisors edged higher at 28.6 percent, while smaller firms excelled in owner income efficiency, generating an average 56.3 EBOC margin. 
• Evolving compensation: Support and service advisors saw the largest base salary increases (32 percent) since 2018, while partner-level advisors experience stagnant or declining salaries in favor of incentive-driven models aligned with firm performance. CEOs and COOs saw notable total compensation gains underscoring the rising importance of operational leadership. 
• Operational excellence: The most profitable firms ran leaner, spending just 25.7 percent of revenue on overheads compared to 45 percent among other firms, demonstrating the power of scalable systems and disciplined growth strategies. These elite firms also managed nearly double the clients per professional compared to peers. 

"This year’s study underscores both the opportunities and challenges facing advisors," said Andy Burt, managing editor at InvestmentNews. "Advisory firms achieved strong growth in 2024, but rising overhead costs, wage pressures, and client attrition highlight the importance of careful planning and operational efficiency. Our goal with this research is to equip firms with actionable intelligence that can help them make smarter strategic decisions."   

The report also highlights emerging challenges, including rising client attrition tied to generational shifts and advisor retirements, signaling the importance of multigenerational engagement and digital client experiences. 

"This report not only reflects where the industry is today, but also points to where it is heading," Burt added. "By comparing compensation structures, profitability trends, and client growth strategies, advisors gain a clear roadmap to improve both practice management and client outcomes."   

The 2025 InvestmentNews Advisor Benchmarking Study is your essential guide to understanding where the profession is headed—and how to get there first.