U.S. Postal Service Reports Fiscal Year 2025 Results

• Operating revenue was $80.5 billion, a 1.2 percent increase, due largely to growth in USPS Ground Advantage and strategic price increases
• Net loss decreased $542 million compared to prior year while controllable loss increased by $900 million, reflecting lower than expected revenues from our package business
• Transportation expense reductions of $422 million reflect continued progress of network optimization

WASHINGTON – The U.S. Postal Service today announced its financial results for the 2025 fiscal year ended September 30. Controllable loss, which excludes certain expenses that are not controllable by management, was $2.7 billion for the year, compared to $1.8 billion for the prior year.

Net loss for the year under generally accepted accounting principles (GAAP) totaled $9.0 billion, compared to a net loss of $9.5 billion for the prior year. This decrease in net loss is attributed to our operating revenue increase of $916 million, transportation expense reductions of $422 million, and a decrease in workers’ compensation expense of $1.1 billion, partially offset by increased compensation and benefits expense of $1.7 billion, and higher other operating expenses of $221 million.

“In surveying the results of the past year, the occasional appearance of financial progress – such as our profitable first quarter – is far outweighed by the reality of our significant systemic annual revenue and cost imbalance,” said Postmaster General David Steiner. “To correct our financial imbalances, we must explore new revenue opportunities and public policy changes to improve our business model. Most importantly, we must operate more efficiently and compete more effectively to best perform our public service mission.”

The Postal Service is seeking further administrative and legislative reforms to remedy outdated and unwarranted financial and regulatory burdens. These reforms include: changes in retiree pension benefit funding rules for the Civil Service Retirement System (CSRS) benefits, diversification of pension assets, raising the statutory debt ceiling, and workers’ compensation administration reform.

Total operating revenue was $80.5 billion for the year, an increase of $916 million, or 1.2 percent, compared to the prior year. The increase was due largely to continued growth of our USPS Ground Advantage shipping service as well as strategic price increases in both of our mail and shipping categories.

First-Class Mail revenue increased $370 million, or 1.5 percent, on a volume decline of 2.2 billion pieces, or 5.0 percent, compared to the prior year. Marketing Mail revenue increased $350 million, or 2.3 percent, on a volume decline of 764 million pieces, or 1.3 percent, compared to the prior year. Shipping and Packages revenue increased $315 million, or 1.0 percent, on a volume decline of 415 million pieces, or 5.7 percent, compared to the prior year.

Total operating expenses were nearly $89.8 billion for the year, an increase of $317 million, or 0.4 percent, compared to the prior year. The overall increase in operating expenses was primarily due to increases in compensation costs and other operating costs, including the incentivized voluntary early retirement offer to certain employees, partially offset by the impact of discount rates on workers’ compensation costs and lower transportation costs.

“The financial results reflect the difficulties of our mandated cost structure and the continued decline in volume, offset to some degree by the Postal Service’s efforts to push back against those trends by aggressively managing the costs we can control and by the judicious use of our pricing authority,” said Chief Financial Officer Luke Grossmann. “We remain focused on moving toward financial sustainability through growing our USPS Ground Advantage package business, creating additional operational efficiencies, and developing product strategies to generate growth.”

Fiscal Year 2025 Operating Revenue and Volume by Service Category Compared to Prior Year
The following table presents revenue and volume by service category for the years ended September 30, 2025 and 2024:

Selected Fiscal Year 2025 Revenue Results of Operations and Non-GAAP Measures
This news release includes controllable loss which is not calculated and presented in accordance with GAAP. This non-GAAP measure is calculated as net loss adjusted for costs outside of management’s control, including workers’ compensation expense caused by actuarial revaluation and discount rate changes and the amortization of the CSRS and Federal Employee Retirement System (FERS) unfunded liabilities. These latter costs not only are largely outside of management’s control but also can fluctuate significantly based on actuarial assumptions and interest rates.

This non-GAAP measure provides meaningful information to assist users of the Postal Service’s financial statements to more fully understand the financial results and assess the Postal Service’s ongoing performance because it excludes items that may not be indicative of, or are unrelated to, underlying operations.

Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Postal Service’s reported results prepared in accordance with GAAP. This adjusted financial information does not represent a comprehensive basis of accounting.

The following table reconciles GAAP net loss to our non-GAAP financial measure for the years ended September 30, 2025 and 2024:

Financial results in the Form 10K are available at http://about.usps.com/what/financials/.