- media@moneyinfocus.news
The United States Postal Service reported improved financial performance for the second quarter of fiscal year 2026, citing stronger revenue growth and reduced controllable losses, while warning that the agency still faces a significant liquidity crisis requiring urgent Congressional and regulatory action.
According to results released Thursday, the Postal Service posted operating revenue of $20.2 billion for the quarter ending March 31, 2026, representing a 2.3% increase year-over-year. Net losses narrowed substantially to $2.0 billion, compared with $3.3 billion during the same period last year.
The agency’s controllable loss — a non-GAAP metric excluding expenses outside management’s direct control — improved to $642 million, down from $848 million in the prior-year quarter.
The Postal Service said gains were largely fueled by pricing increases across key categories, including Shipping and Packages, Marketing Mail, and First-Class Mail.
Shipping and Packages revenue rose 4.5% to $8.08 billion, despite a slight decline in package volume. Marketing Mail revenue increased 5.7% to $3.88 billion, while First-Class Mail revenue slipped marginally as mail volumes continued their long-term decline.
Total operating expenses fell 4.1% to $22.1 billion, primarily due to lower workers’ compensation costs tied to actuarial adjustments and discount rate changes. Compensation and transportation expenses — two of the Postal Service’s largest cost centers — remained relatively flat year-over-year.
Despite the improved quarterly performance, Postmaster General David Steiner warned that the Postal Service remains under significant financial pressure.
“It is a simple fact that we are in a cash crisis,” Steiner said, adding that the organization is taking “serious and appropriate steps” to conserve funds while urging Congress to expand USPS borrowing authority and modernize operational constraints.
The Postal Service also highlighted temporary regulatory relief granted by the Postal Regulatory Commission, which allows USPS greater flexibility in how retirement-related cash reserves can be used.
Additionally, USPS suspended portions of its payments to the Office of Personnel Management tied to federal retirement obligations beginning April 10, 2026, a move expected to conserve approximately $2.5 billion during the remainder of the fiscal year.
Chief Financial Officer Luke Grossmann said management actions alone will not be sufficient to restore long-term financial sustainability.
The Postal Service continues to advocate for broader regulatory reforms, including modifications to the current price-cap ratemaking system and greater pricing flexibility for market-dominant mail products.
The results come as USPS continues a multi-year modernization initiative aimed at improving operational efficiency, expanding package capabilities, and stabilizing finances amid declining traditional mail volumes and growing e-commerce demand.
