This study evaluated the effect of the density at harvest on the performance and profitability of hatchery‐reared spotted rose snapper cultured in cages. The fish were stocked at harvest densities of 15, 20, and 22 kg/m3 in cages of 222 and 286 m3. More than 39,000 snapper fingerlings with an initial weight of 14 g were stocked. The fish were fed an extruded diet and cultured over a 360 d period. The thermal growth coefficient ranged from 0.04 to 0.05 and survival was 95% for all treatments, with the highest final weight (436.8 g) observed for fish reared at a density of 20 kg/m3. The allometric value b indicated that hatchery‐raised, cage‐cultured snapper were heavier than their wild counterparts. The major costs were feed (ranging from 44.7–45.9%), labor (22.4–32.6%), and seed costs (20.2–26.1%). The total production cost ranged from US$ 6.5 to US$ 7.5/kg. The baseline scenario was not economically feasible. However, a 10% increase in the sales price resulted in increases in the internal rate of return (183%) and net present value (US$ 97,628.9). These results suggest that L. guttatus has the potential for commercial production in cages.