USPS Volumes Decline Continues

WASHINGTON, DC — The U.S. Postal Service released its financial results for the third quarter of fiscal year 2023 (April 1, 2023 – June 30, 2023) with net loss for the quarter of $1.7 billion.

Total operating revenue was $18.6 billion for the quarter, a decrease of $168 million, or 0.9 percent, compared to the same quarter last year.

First-Class Mail revenue increased $221 million, or 4.0 percent, on a volume decline of 678 million pieces, or 5.9 percent, compared to the same quarter last year.

Shipping and Packages revenue remained relatively flat while volume declined 41 million pieces, or 2.4 percent, compared to the same quarter last year.

Marketing Mail revenue decreased $333 million, or 8.8 percent, on a volume decline of 2.6 billion pieces, or 16.0 percent, compared to the same quarter last year.

According to the USPS, Marketing Mail decreases were driven by the continued decline in advertising spending due to economic pressures experienced throughout most of the fiscal year, a higher inflationary environment affecting print media production costs, and lower political and election mail revenue and volume, compared to the same quarter last year, due to the timing of elections.

Total operating expenses were $20.5 billion for the quarter, an increase of $1.8 billion, or 9.6 percent, compared to the same quarter last year. On a non-GAAP basis, adjusted operating expenses increased by $382 million, or 2.0 percent, compared to the same quarter last year.

“Continued rising costs in several areas of our business pose a challenge.” said Chief Financial Officer Joseph Corbett. “We continue to manage the costs within our control, such as by reducing work hours by 6 million hours compared to the same quarter last year and by focusing on transportation and other operating costs.”

“In alignment with our Delivering for America transformation plan, we are making positive strides in improving the service we provide the American public – including the introduction of new products like USPS Ground Advantage, which provide excellent value to our customers,” said Postmaster General Louis DeJoy.

“Concurrently, our team is working hard to reduce our cost of performance which is helping to off-set still sizeable inflationary and economic pressures. We are setting the stage for long-term financial sustainability as we continue to modernize our processing, transportation, retail and delivery networks.”

The following table reconciles GAAP net loss to non-GAAP financial measures for the three months ended June 30, 2023 and 2022: