USPS Reports $6.5 Billion Annual Loss as Revenue Rises

The U.S. Postal Service reported a $6.5 billion net loss for fiscal 2026, an improvement from the previous year's $9 billion loss, even as officials warned that its financial position remains precarious.

Operating revenue rose 3% to $82.9 billion for the year ended September 30. USPS attributed the increase to its Ground Advantage shipping service, marketing mail and higher prices, although overall mail and package volumes declined.

The Postal Service's controllable loss, a separate measure that excludes certain costs outside management's control, narrowed to $2.4 billion from $2.7 billion. That figure is different from the $6.5 billion net loss calculated under generally accepted accounting principles.

Operating expenses totaled $89.4 billion, down 0.4%. Lower workers' compensation and retirement costs helped, but higher retiree health benefits, employee compensation and transportation expenses offset part of those gains.

Postmaster General David Steiner said USPS is balancing daily operations against the need to conserve cash. The organization is seeking changes to its business model and funding rules, including a higher statutory debt limit and changes to pension obligations.

USPS said it reduced work hours by 19 million during the year, consolidated transportation operations and took other steps to limit spending. It also deferred about $2.6 billion in pension contributions, but stressed that those obligations will eventually have to be paid.

The agency said its own cost-cutting measures will not be enough to put it on a sustainable path without legislative, regulatory and administrative changes. USPS generally receives no tax dollars for operating expenses and relies on postage, products and services to fund its operations.