The US Postal Service has reported third-quarter fiscal year 2026 results showing narrower losses despite what it described as an ongoing “long-term liquidity crisis”.
Total operating revenue for the quarter (April 1-June 30, 2026) was US$19.9bn, up 6.1%/US$1.1bn, compared with the same quarter last year. The increase was driven by growth in USPS Ground Advantage Shipping and Packages and strength in marketing mail, along with price increases in First Class mail, marketing mail and a time-limited transportation-related price increase for certain Shipping and Packages offerings implemented April 26. These increases were partially offset by declining volumes in First Class Mail and Shipping and Packages.
Shipping and Packages revenue rose 7.7% to US$8.25bn despite a 3.4% volume decline. Marketing mail revenue rose 12.3% on a 4.3% volume increase, while First Class mail revenue rose 4.3% despite a 3.5% volume decline.
Total operating expenses were US$22.5bn, up 2.0%, driven primarily by higher retirement and retiree health benefits, compensation costs and rising fuel-related transportation expenses.
Net loss under GAAP totaled US$2.5bn, down US$562m from the previous year. Controllable loss, a non-GAAP measure excluding costs outside management’s control, was US$1.0bn, down from US$1.6bn in the same quarter the previous year.
Postmaster general David Steiner said, “Our results this quarter reflect some progress relative to those areas of the business where we can exercise control, namely with revenue generation, cost control and service improvement. Nevertheless, the Postal Service is today continuing to face a severe liquidity crisis, and our financial losses this quarter reflect systemic challenges inherent in our Congressionally established business model and regulatory framework.”
Chief financial officer Luke Grossmann said, “The financial results for the quarter reflect a slight improvement compared to the same quarter last year, as we continue to grow revenue and manage the costs under our control, including reducing four million work hours during the quarter. However, management actions alone will not resolve ongoing financial problems that are caused by an outdated business model that isn’t responsive to change.”
In April, the Postal Regulatory Commission granted a temporary conditional waiver of required pension amortization payments, and USPS deferred approximately US$1.4bn in FERS normal cost contributions this quarter – measures it describes as temporary rather than long-term solutions.
USPS reiterated calls for Congress to raise its US$15bn statutory debt limit, unchanged since 1992, along with reforms to retiree pension funding rules and workers’ compensation administration.
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