- Controllable loss increased $522 million, compared to same quarter last year
- USPS Ground Advantage continues to grow, providing customers with reliable low-cost service
- David Steiner becomes 76th Postmaster General on July 15th
WASHINGTON, Aug. 7, 2025 /PRNewswire/ — The U.S. Postal Service today announced its financial results for the third quarter of fiscal year 2025 (Apr. 1, 2025 – Jun. 30, 2025). Controllable loss, which excludes certain expenses that are not controllable by management, was $1.6 billion for the quarter, compared to $1.1 billion for the same quarter last year.
Net loss for the quarter totaled $3.1 billion, compared to a net loss of $2.5 billion for the same quarter last year. Results for the quarter were impacted by unfavorable non-cash workers’ compensation adjustments of $237 million, due to actuarial revaluation and discount rate change factors that are not controllable by the Postal Service, increased compensation and benefits expense of $360 million, and higher other operating expenses of $205 million.
“The Postal Service continues to play an important role in the American economy and society, and in the daily lives of the American public, as it has for 250 years,” said Postmaster General David Steiner, at his first Board of Governors meeting since joining the Postal Service on July 15, 2025. “America needs a financially strong Postal Service to continue to meet the needs of the nation far into the future. To restore our financial strength, we must continue to evolve amid a changing business environment so that we can provide high-quality service at a reasonable cost. Growing our revenue and cutting our costs to serve is the only path to financial health.”
Total operating revenue was $18.8 billion for the quarter, essentially flat compared to the same quarter last year.
Shipping and Packages revenue increased $58 million, or 0.8 percent, on a volume decline of 114 million pieces, or 6.5 percent, compared to the same quarter last year. Marketing Mail revenue decreased $29 million, or 0.8 percent, on a volume increase of 65 million pieces, or 0.5 percent, compared to the same quarter last year. First-Class Mail revenue decreased $86 million, or 1.4 percent, on a volume decline of 568 million pieces, or 5.4 percent, compared to the same quarter last year, with strategic price increases offsetting the declining volume impact.
“Our top priorities are improving performance and addressing and fixing the larger trends driving our financial losses,” said Steiner. “I believe strongly that the Postal Service is capable of operating as Congress intended as an independent entity of the executive branch, that can compete effectively and operate efficiently in the performance of our public service mission and fully fund our operations.”
Total GAAP operating expenses were $22.0 billion for the quarter, an increase of $613 million, or 2.9 percent, compared to the same quarter last year. The overall increase in operating expenses was primarily due to inflationary impacts on compensation costs (including workers’ compensation) and other operating costs.
“While the Postal Service continues to face financial challenges, we are an organization pursuing continuous improvements and innovation,” said Chief Financial Officer Luke Grossmann. “We remain focused on moving toward financial sustainability through operational efficiency, product strategies that will generate growth, and pricing …