WASHINGTON — The U.S. Postal Service today announced its financial results for the second quarter of fiscal year 2025 (Jan. 1, 2025 – Mar. 31, 2025). Controllable loss, which excludes certain expenses that are not controllable by management, was $848 million for the quarter, compared to $317 million for the same quarter last year.
Net loss for the quarter totaled $3.3 billion, compared to a net loss of $1.5 billion for the same quarter last year. Results for the quarter were impacted by unfavorable non-cash workers’ compensation adjustments of $1.2 billion, due to actuarial revaluation and discount rate change factors that are not controllable by the Postal Service, increased compensation and benefits expense of $449 million, and higher other operating expenses of $124 million, partially offset by lower transportation expenses of $116 million.
“As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure,” said Acting Postmaster General Douglas Tulino. “At the same time, we are seeing strong market acceptance of shipping products like USPS Ground Advantage and adopting an increasingly competitive posture across our product portfolio. We are also encouraged that the increasing efficiencies of our processing, logistics and delivery network are showing steady progress in reducing our relative cost as we serve the nation and American commerce.”
Total operating revenue was $19.7 billion for the quarter, essentially flat compared to the same quarter last year.
First-Class Mail revenue increased $69 million, or 1.0 percent, on a volume decline of 680 million pieces, or 5.8 percent, compared to the same quarter last year, with strategic price increases offsetting the declining volume impact. Shipping and Packages revenue increased $52 million, or 0.7 percent, on a volume decline of 118 million pieces, or 6.9 percent, compared to the same quarter last year. Marketing Mail revenue decreased $50 million, or 1.4 percent, on a volume decline of 787 million pieces, or 5.7 percent, compared to the same quarter last year.
Total GAAP operating expenses were $23.1 billion for the quarter, an increase of $1.8 billion, or 8.3 percent, compared to the same quarter last year. The overall increase in operating expenses was primarily due to actuarial revaluation and discount rate impacts on workers’ compensation costs, as well as inflationary impacts on compensation costs, retirement costs and other operating costs, partially offset by lower transportation costs.
“The financial results for the second quarter reflected significant challenges that were out of our control to include unfavorable factors such as non-cash workers’ compensation adjustments, actuarial revaluations and discount rate changes,” said Chief Financial Officer Luke Grossmann. “We did, however, see continued growth in package revenues, which along with lower transportation expenses and work hour reductions, favorably impacted our business. Adherence to the tenets of our 10-year comprehensive strategic plan has allowed us to save $116 million in transportation costs and 10 million work hours in the quarter. While full success of the plan still requires further administrative and legislative actions, the plan delivers the framework for us to better innovate to grow revenue, work more efficiently, and achieve financial sustainability to fulfill our universal service mission over an integrated network to deliver both mail and packages.”
