Letter From
Our Chairman.

Dear Reader:

In 2020, the onset of the COVID-19 pandemic ushered in a series of economic shocks to global and Puerto Rico business communities. Many organizations realized how unprepared they were to face the operational and financial difficulties that resulted. It’s 2026 today and many businesses are still recovering from the impact of COVID-19 on the global economy. Given our unique skillset at Alpheus IQ, we decided to task ourselves with providing a Market Sentiment Report to help local businesses prepare for the uncertainty that lies ahead. This Puerto Rico Market Sentiment Report is the conclusion of an online survey that was available to local businesspeople through various online forums and trade associations. Through our marketing efforts, we were able to collect 135 responses, mostly from C-Level executives in Puerto Rico. After collecting the responses, we reached out to approximately 50% of respondents to confirm the existence of these entities, and fortunately, more than 90% were verified. The questions of the Survey were designed to help us determine the economic outlook and sentiment for 2026, based on known leading economic and business indicators. Although 135 responses from the approximately 47,081 businesses in Puerto Rico is a small sample size, we believe the insight the report provides is quite helpful.

As a suggestion on how to read this report, we recommend the following:

• First, read the executive summary
• Then, go to your industry section (or any other section in which you are interested) for industry-specific findings

Each section is presented similarly, and we have our insights at the end of each section.

We have tried to be as objective as possible in our analysis and hope that this Puerto Rico Market Sentiment Report will help you prepare for 2026.

Sincerely,

A. Cameron McKenzie-Hertell

Principal, Alpheus IQ  ·  Vice President for North America, CCCAM

A hemispheric platform
for chamber cooperation.

Six launch programs. Five work streams.

Regional representation. Shared governance.

Ovidio Claros Polanco, Executive President of the Bogotá Chamber of Commerce, was elected unanimously at the first General Assembly and chairs the Board, alongside two vice presidents per region.

Source: CCCAM Institutional Presentation, October 2026.

About Us.

Established in 2015, Alpheus IQ is a boutique corporate financial advisory firm helping clients in every stage of its corporate life-cycle. We help corporations by providing financial structure, sound advice and experience in complicated transactions. The management team at the firm has worked on over $2 billion worth of transactions, including sales of companies, raising capital, and financial restructuring.

We provide hands-on service through your company’s life-cycle, from inception to succession to exit opportunities. We aim to be your corporate financial sounding board for important decisions.

Disclaimer

Executive Summary

Alpheus IQ is pleased to release the results of its 2026 Puerto Rico Market Sentiment Report. In mid-2023, Alpheus IQ surveyed hundreds of C-suite level Puerto Rico business leaders. 135 leaders provided responses to our survey.

Business leaders, investors, policy makers and non-governmental agencies likely find this report most useful in the following ways:

Key Findings

*# of positive responses / total # of responses in a selected industry

Executive Summary

Survey Overview & Results

In 2026, Alpheus IQ conducted a broad Market Sentiment survey of the Puerto Rico business community. 135 respondents completed the survey. Approximately 89% of the respondents were C-suite level executives. Respondents provided both business-level and the industry-wide feedback to a range of questions (please see Appendix I for the list of survey questions). These 135 respondents represented nine industry verticals:

Baseline Responses

The table below represents baseline responses from all respondents. Using this standard, individual industries can be evaluated against the Puerto Rico market as a whole. For example, all (100%) Healthcare & Life Science companies that participated in the survey expect to increase their inventory levels in 2026, compared to 84% of all 135 businesses represented in the survey.

Sales Expectations

Broadly speaking, respondents believe 2026 will be a strong revenue year. In aggregate, leaders tended to see similar growth trajectories for “My Company” and “My Industry.”

The leaders have similar directional views of their business and their industry, the number of responses were equivalent in terms of magnitude.

Sales Expectations (Cont.)

Clear industry trends emerged in the more “extreme” sales forecasts. The “Ultra Bulls” (defined as 10% or more growth) and “Ultra Bears” (defined as 10% or more decline) displayed curious industry patterns:

Business Expansion vs. Cost Cuts

Survey Question: “Do you have an expansion plan, or will you cut costs in 2026?”

Puerto Rico businesses generally project to expand their businesses in 2026 versus cutting costs. These expectations normally follow sales projections. Energy is the only industry projecting 100% business expansion. Overall, 80% of respondents forecast business expansion versus 20% anticipating cost cuts

Business Expansion vs. Cost Cuts

Inventory Management

• Among companies with meaningful inventories, 20 of 135 (38%) carried less than six weeks worth of sales on their balance sheets.
• 84% anticipate increasing their inventory levels in 2026.

Accounts Receivable (AR)

• 69% of respondents collect from their customers in 45 days or less; only 7 of 135 respondents (5%) indicated receivables over 90 days.
• 20% of leaders believe that customers will take longer to pay in 2026.

Accounts Payable (AP)

• 84% of respondents pay their vendors and suppliers in 45 days or less.
• 65% of respondents will not pursue more favorable trade credit terms in 2026.

Puerto Rico Cash Conversion Cycles (CCC) By Industry

• Respondents demonstrated that Puerto Rico businesses have divergent CCC by industry.
• Commonly, industries with little inventory trend toward shorter CCC.
• Industrial, Construction & Manufacturing had the longest CCC among the nine industries surveyed.

Consumer Discretionary & Hospitality Industry

Survey respondents in the Consumer Discretionary & Hospitality industry consisted of tourism, hotels, restaurants, transportation, auto retail, and other retail sales companies. 22 survey respondents provided business expectations for 2026.

Sales Expectations: Industry Growth vs. “My Company”

Recruitment Process

Business Expansion vs. Cost Cuts

Capital Availability

Inventory Management

• 73% (16 out of 22) of respondents indicate meaningful inventory levels.
• Among Consumer Discretionary & Hospitality companies with meaningful inventories, 7 of 22 (37%) carried less than six weeks worth of sales on their balance sheets.
• 94% anticipate increasing their inventory levels in 2026, which is above the Puerto Rico baseline level of 84%. This seems consistent with an expectation of increased business volume in 2026.

Accounts Receivable (AR)

• 77% (17 out of 22) of Consumer Discretionary & Hospitality companies in Puerto Rico collect from their customers in 45 days or less; only 1 of 22 respondents (5%) indicated receivables over 90 days.
• 18% of leaders believe their customers will take longer to pay in 2026, below the respondent baseline of 20%.

Accounts Payable (AP)

• 77% of Consumer Discretionary & Hospitality companies in Puerto Rico pay their vendors and suppliers in 45 days or less.
• 64% of respondents will not pursue more favorable trade credit terms in 2026, below with the Puerto Rico baseline of 65% across all industries.

Cash Conversion Cycle

• On average, Consumer Discretionary & Hospitality firms in Puerto Rico expect a Cash Conversion Cycle (“CCC”) of approximately 37 days for 2026.
• Interpreting CCC:
  • CCC measures the working capital efficiency of a company.
  • As a rule, lower CCC represents better working capital efficiency (because lower CCC is achieved by lower inventory levels, quicker customer payables, or more favorable trade credit terms).

Conclusions - Consumer Discretionary & Hospitality Industry

Education, Non-Profit & Other Industry

Survey respondents in the Education, Non-Profit & Other industry consisted of education, philanthropic, religiously-affiliated, and other businesses. 7 respondents provided business expectations for 2026.

Sales Expectations: Industry Growth vs. “My Company”

Recruitment Process

Business Expansion vs. Cost Cuts

Capital Availability

Inventory Management

• 0% (0 out of 7) of respondents indicate meaningful inventory levels.
• Among Education, Non-Profit & Other companies with meaningful inventories, of 7 (0%) carried less than six weeks worth of sales on their balance sheets.
• 100% anticipate increasing their inventory levels in 2026, which is above the Puerto Rico baseline level of 84%. This seems consistent with an expectation of decreased business volume in 2026.

Accounts Receivable (AR)

• 57% (4 out of 7) of Education, Non-Profit & Other companies in Puerto Rico collect from their customers in 45 days or less; only of 7 respondents (0%) indicated receivables over 90 days.
• 43% of leaders believe their customers will take longer to pay in 2026, above the respondent baseline of 20%.

Accounts Payable (AP)

• 86% of Education, Non-Profit & Other companies in Puerto Rico pay their vendors and suppliers in 45 days or less.
• 86% of respondents will not pursue more favorable trade credit terms in 2026, above with the Puerto Rico baseline of 65% across all industries.

Cash Conversion Cycle

• On average, Education, Non-Profit & Other firms in Puerto Rico expect a Cash Conversion Cycle (“CCC”) of approximately 7 days for 2026.
• Interpreting CCC:
  • CCC measures the working capital efficiency of a company.
  • As a rule, lower CCC represents better working capital efficiency (because lower CCC is achieved by lower inventory levels, quicker customer payables, or more favorable trade credit terms).

Conclusions - Education, Non-Profit & Other Industry

Energy Industry

Survey respondents in the Energy industry included oil & gas companies, natural resource, electric utilities, and alternative energy companies. 3 respondents provided their business expectations for 2026.

Sales Expectations: Industry Growth vs. “My Company”

Recruitment Process

Business Expansion vs. Cost Cuts

Capital Availability

Inventory Management

• 67% (2 out of 3) of respondents indicate meaningful inventory levels.
• Among Energy companies with meaningful inventories, 1 of 3 (50%) carried less than six weeks worth of sales on their balance sheets.
• 0% anticipate increasing their inventory levels in 2026, which is below the Puerto Rico baseline level of 84%. This seems consistent with an expectation of decreased business volume in 2026.

Accounts Receivable (AR)

• 67% (2 out of 3) of Energy companies in Puerto Rico collect from their customers in 45 days or less; only of 3 respondents (0%) indicated receivables over 90 days.
• 33% of leaders believe their customers will take longer to pay in 2026, above the respondent baseline of 20%.

Accounts Payable (AP)

• 33% of Energy companies in Puerto Rico pay their vendors and suppliers in 45 days or less.
• 0% of respondents will not pursue more favorable trade credit terms in 2026, below with the Puerto Rico baseline of 65% across all industries.

Cash Conversion Cycle

• On average, Energy firms in Puerto Rico expect a Cash Conversion Cycle (“CCC”) of approximately 37 days for 2026.
• Interpreting CCC:
  • CCC measures the working capital efficiency of a company.
  • As a rule, lower CCC represents better working capital efficiency (because lower CCC is achieved by lower inventory levels, quicker customer payables, or more favorable trade credit terms).

Conclusions – Energy Industry

Environmental & Agriculture Industry

Survey respondents in the Environmental & Agriculture industry included environmental management, agribusiness, agricultural services, and waste management firms. 10 respondents provided their business expectations for 2026.

Sales Expectations: Industry Growth vs. “My Company”

Recruitment Process

Business Expansion vs. Cost Cuts

Capital Availability

Inventory Management

• 10% (1 out of 10) of respondents indicate meaningful inventory levels.
• Among Environmental & Agriculture companies with meaningful inventories, of 10 (0%) carried less than six weeks worth of sales on their balance sheets.
• 100% anticipate increasing their inventory levels in 2026, which is above the Puerto Rico baseline level of 84%. This seems consistent with an expectation of decreased business volume in 2026.

Accounts Receivable (AR)

• 70% (7 out of 10) of Environmental & Agriculture companies in Puerto Rico collect from their customers in 45 days or less; only of 10 respondents (0%) indicated receivables over 90 days.
• 10% of leaders believe their customers will take longer to pay in 2026, below the respondent baseline of 20%.

Accounts Payable (AP)

• 90% of Environmental & Agriculture companies in Puerto Rico pay their vendors and suppliers in 45 days or less.
• 60% of respondents will not pursue more favorable trade credit terms in 2026, below with the Puerto Rico baseline of 65% across all industries.

Cash Conversion Cycle

• On average, Environmental & Agriculture firms in Puerto Rico expect a Cash Conversion Cycle (“CCC”) of approximately 51 days for 2026.
• Interpreting CCC:
  • CCC measures the working capital efficiency of a company.
  • As a rule, lower CCC represents better working capital efficiency (because lower CCC is achieved by lower inventory levels, quicker customer payables, or more favorable trade credit terms).

Conclusions – Environmental & Agriculture Industry

Financial Services & Insurance Industry

Survey respondents in the Financial & Insurance Services industry consisted of commercial banks, investment banks, investment firms, venture capital, private equity, insurance companies, accountancy firms, real estate firms, and insurance brokers. 19 respondents provided business expectations for 2026

Sales Expectations: Industry Growth vs. “My Company”

Recruitment Process

Business Expansion vs. Cost Cuts

Capital Availability

Inventory Management

• 11% (2 out of 19) of respondents indicate meaningful inventory levels.
• Among Financial & Insurance Services companies with meaningful inventories, 1 of 19 (33%) carried less than six weeks worth of sales on their balance sheets.
• 67% anticipate increasing their inventory levels in 2026, which is below the Puerto Rico baseline level of 84%. This seems consistent with an expectation of increased business volume in 2026.

Accounts Receivable (AR)

• 89% (17 out of 19) of Financial & Insurance Services companies in Puerto Rico collect from their customers in 45 days or less; only of 19 respondents (0%) indicated receivables over 90 days.
• 11% of leaders believe their customers will take longer to pay in 2026, below the respondent baseline of 20%.

Accounts Payable (AP)

• 100% of Financial & Insurance Services companies in Puerto Rico pay their vendors and suppliers in 45 days or less.
• 89% of respondents will not pursue more favorable trade credit terms in 2026, above with the Puerto Rico baseline of 65% across all industries.

Cash Conversion Cycle

• On average, Financial & Insurance Services firms in Puerto Rico expect a Cash Conversion Cycle (“CCC”) of approximately 73 days for 2026.
• Interpreting CCC:
  • CCC measures the working capital efficiency of a company.
  • As a rule, lower CCC represents better working capital efficiency (because lower CCC is achieved by lower inventory levels, quicker customer payables, or more favorable trade credit terms).

Conclusions - Financial Services & Insurances Industry

Healthcare & Life Sciences Industry

Healthcare & Life Sciences industry respondents consisted of physicians (general & specialized), dentists, HMOs, Nursing Homes, Pharmaceutical Manufacturing, Pharmaceutical Sales, and other health-related businesses. 16 survey respondents provided business expectations for 2026.

Sales Expectations: Industry Growth vs. “My Company”

Recruitment Process