Wedoany.com Report on Feb 7th, The United States Postal Service (USPS) recently released its financial report for the first quarter of fiscal year 2026, showing a decline in performance. Operating revenue for the quarter was $22.2 billion, a decrease of 1.2% or $264 million compared to the same period last year. USPS attributed the revenue decline primarily to reduced volumes in First-Class Mail, Shipping and Packages, and Marketing Mail, partially offset by price increases. Under generally accepted accounting principles (GAAP), USPS reported a net loss of approximately $1.3 billion, compared to a net profit of $144 million in the same quarter last year.

Postmaster General David Steiner stated, "While our service performance improved during the holiday quarter, with on-time delivery rates and other key performance metrics showing gains, we continue to face significant systemic financial and operational challenges. To improve our financial situation, we are actively pursuing growth strategies, including new opportunities for businesses to leverage our extensive last-mile delivery network, while enhancing operational efficiency. We believe that, combined with the necessary regulatory, administrative, and legislative reforms, these measures can meet public needs and help USPS restore long-term financial stability."

USPS further explained that it is seeking administrative and legislative reforms to alleviate outdated and unreasonable financial and regulatory burdens. The proposed reforms involve adjusting contribution rules for the Civil Service Retirement System (CSRS) pension, diversifying pension assets, raising the statutory debt ceiling, and improving workers' compensation management.

In terms of specific business segments, First-Class Mail revenue increased by $68 million, or 1.0%, but mail volume decreased by 702 million pieces, a drop of 6.1%. Marketing Mail revenue decreased by $126 million, down 2.7%, with volume declining by 1.8 billion pieces, a 10.9% decrease. Shipping and Packages revenue decreased by $23 million, a slight 0.2% decline, with package volume down by 243 million pieces, a 12.1% decrease. USPS noted in its 10-Q filing that the Shipping and Packages market is highly competitive, with some major customers continuing to expand their delivery coverage and a growing trend of insourcing by large e-commerce companies and other competitors.

USPS Chief Financial Officer Luke Grossman pointed out that the quarter's financial results reflect the current mandatory cost structure and the ongoing decline in volume. He stated, "By actively managing controllable costs, such as reducing 9 million work hours during the peak season, we have partially mitigated these pressures, keeping major expenditures relatively stable. However, achieving our strategic goals requires further reform and regulatory support, in addition to improving operational efficiency and developing innovative products and services."

Additionally, USPS recently launched a bidding website, allowing shippers of all sizes to access its network of over 18,000 Destination Delivery Units (DDUs) through a bidding process, thereby utilizing its last-mile delivery network. USPS stated that this initiative aims to expand service access. Previously, DDU delivery was primarily available to very large customers. Going forward, customers can propose solutions at various DDU locations based on volume, price, and delivery time to achieve same-day or next-day delivery.