The United States Postal Service (USPS) reported a net loss of $9.0 billion for the fiscal year ended September 30, 2025, a modest improvement from the prior year’s $9.5 billion loss but underscoring the agency’s deep-seated budgetary imbalance.
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On a controllable-cost basis (excluding items like workers’ compensation and actuarial pension adjustments), the USPS logged a loss of $2.7 billion, up from $1.8 billion the year before, indicating operating losses are worsening despite revenue gains.
Reasons for the losses:
- Volume declines – First-Class Mail volume dropped roughly 5 % and shipping/package volumes also fell even though revenue ticked up slightly.
- Rising compensation and benefits costs – Employee pay, benefits and retirement-related costs increased, contributing significantly to expense growth.
- Mandated cost burdens – The USPS continues to carry burdens imposed by pension/retiree-benefit rules and restricted investment of retirement assets.
- Legacy infrastructure and business-model stress – The shift from mail to digital communications and the competitive package market continues to erode traditional revenue streams while fixed costs remain high.
Potential for another rate increase:
To help restore financial balance, the USPS is exploring new revenue opportunities and has already proposed product-price increases — for example, increases of 6.6 % for Priority Mail, 5.1 % for Priority Mail Express and up to 7.8 % for Ground Advantage.
Given the persistent losses and weak operating metrics, another rate increase for either postage stamps or parcel services appears increasingly likely. The Postal Regulatory Commission will closely scrutinize any filing, and consumer-mail-volume contraction may limit how much the agency can raise rates without further depressing demand.
Holiday mailing dates for 2025:
For expected delivery by December 25 in the contiguous U.S. (lower 48 states):
- USPS Ground Advantage: Dec. 17
- First-Class Mail: Dec. 17
- Priority Mail: Dec. 18
- Priority Mail Express: Dec. 20
For Alaska, Hawaii, Puerto Rico and U.S. territories, earlier send-by dates apply (e.g., Ground Advantage by Dec. 16).
Outlook:
With controllable losses increasing and systemic pressures mounting, the USPS is under mounting pressure to enact reform while balancing its public-service mandate. Unless significant structural changes occur — including cost reductions, volume stabilization or pricing adjustments — the agency may face further rate hikes, service reductions or increased reliance on legislative relief.
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