The Postal Service has announced its financial results for fiscal year 2025’s second quarter (Jan. 1-March 31). Here are some highlights:
• Revenue. Total operating revenue was $19.7 billion, essentially flat compared with the same quarter the previous fiscal year. First-Class Mail revenue increased 1 percent, while Marketing Mail revenue decreased 1.4 percent. Shipping and packages revenue increased 0.7 percent.
• Volume. Total volume was 26.3 billion pieces, down 5.9 percent from the same quarter one year ago. First-Class Mail volume declined 5.8 percent, Marketing Mail volume declined 5.7 percent and shipping and packages volume declined 6.9 percent.
• Expenses. Under generally accepted accounting principles, total operating expenses were $23.1 billion for the quarter, an increase of 8.3 percent compared with the same quarter last year. The overall increase in operating expenses was primarily due to actuarial revaluation and discount rate effects on workers’ compensation costs, as well as inflationary effects on compensation costs, retirement costs and other operating costs, partially offset by lower transportation costs.
• Net loss. Net loss for the quarter totaled $3.3 billion, compared with a net loss of $1.5 billion for the same quarter one year ago. Results for the quarter were affected by unfavorable noncash 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.”
The Postal Service’s May 9 news release has more information.
