U.S. Postal Service suffers net loss of $9 billion in fiscal 2025

Nov 24, 2025, 9 AM

By Linn’s Staff

During fiscal year 2025, which ended Sept. 30, the United States Postal Service recorded a net loss of $9 billion, compared to a net loss of $9.5 billion in fiscal year 2024.

The USPS released its 2025 financial results in a Nov. 14 press release.

Controllable loss, which does not include specific expenses out of the Postal Service’s control, was $2.7 billion in 2025, compared to $1.8 billion in 2024.

“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,” the Postal Service said.

By continuing its network optimization efforts, the USPS showed transportation expense reductions of $422 million.

“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,” the USPS said.

Growth in USPS Ground Advantage shipping and targeted price increases resulted in operating revenue of $80.5 billion, a 1.2 percent increase over 2024.

Although first-class mail saw a volume drop of 2.2 billion pieces, revenue increased $370 million, a 1.5 percent improvement over 2024. Marketing mail revenue rose $350 million, or 2.3 percent, on a volume drop of 764 million pieces, or 1.3 percent, compared to 2024. Shipping and packages revenue jumped $315 million, or 1 percent, on a 5.7 percent volume decline of 415 million pieces, in comparison to last 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 Postal Service said. “The overall increase in operating expenses was primarily due to increases in compensation costs and other operating costs.”

“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,” Postmaster General David Steiner said. “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.”

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