Distill Globally, Adapt Locally: Reasoning Distillation and Product-Type Test-Time Training for Scalable Trade-Up Recommendation

Chain-of-thought (CoT) distillation in the recommendation domain is a necessary precursor to RL training, but raw teacher traces are ill-suited to this task. Large teachers approach the recommendation task with unusually high reasoning uncertainty, repeatedly rechecking their answers without revising them; supervised fine-tuning on such traces produces verbose students that never revise their initial guess. Furthermore, due to the novelty of the recommendation domain, the teacher's reasoning traces are highly out-of-distribution for the small student LLM. We propose Student-Aware CoT Optimization for Recommendation Distillation (SCOReD), a CoT optimization framework tailored to recommendation that first parses each teacher trace into typed segments and uses the student LLM's attention to score the importance of each segment. Then SCOReD dynamically selects a per-segment edit (KEEP / REWRITE / FUSE / PRUNE) based on the output length and comparative log probability lift of the answer given the edit as per the student. Therefore, SCOReD prunes redundant sections of the reasoning trace while preserving information-dense sections and adapts raw teacher traces to the student's output distribution. Training on SCOReD-optimized CoTs provides a cleaner learning signal to the student model and improves over baseline SFT by 1.56% NDCG and 1.9% Recall@5, while reducing reasoning length by 27.3%.

Large language models can improve recommendation quality by reasoning explicitly over user history and candidate items - for example, extracting a user's preferences or explaining why one item fits better than another - rather than mapping history directly to a ranked list. This reasoning, however, is expensive to repeat on every ranking request and, once produced, is typically consumed once and discarded, leaving it neither reusable across future requests nor easy to inspect or correct as user tastes drift. Our insight is that reasoning does not need to be regenerated at every call if it can instead be compressed once into a compact, structured memory that a lightweight model retrieves from. We propose rEDMRec, which distills a teacher LLM's reasoning into four typed, editable experience channels - long-term preference, short-term context, item-perception, and counterfactual hard-negative comparisons - maintained by an LLM memory controller that performs Add/Delete/Modify/Keep operations and refines entries via K-agent debate. A lightweight student LLM then ranks candidates purely by retrieving from this memory, without invoking the teacher again, decoupling online inference cost from reasoning depth. Across ML-1M, Amazon Beauty, and Steam and ten student backbones, rEDMRec improves HR@1 over zero-shot, few-shot, and RAG on every backbone, and over GraphRAG on most backbones, with Impv up to 13.3% vs. the second-best baseline on ML-1M. Channel ablations show that short-term context is the only channel that helps consistently across capacity tiers, whereas long-term, item-perception, and counterfactual contributions are capacity-dependent (and can reverse on the strongest students); debate-based memory optimization lowers bank duplication by 7.4 percentage points while raising downstream HR@1 by up to +0.029 over six optimization epochs.

Practical deployment of large language models (LLMs) requires families of post-trained variants---instruction-tuned, reasoning-tuned, and chat-style models---each at multiple sizes to meet diverse latency and memory budgets. Producing each (variant, size) pair independently is prohibitive, so model families typically span only a handful of coarse-grained sizes per post-trained variant. Boomerang distillation (Kangaslahti et al., 2026) reduces this cost along the size axis for base models. Through model size interpolation, it constructs models of intermediate sizes from a single teacher-student pair without additional training. However, it still treats each post-trained variant as a separate object of optimization. We introduce ADAPT---Amortized Distillation Across Post-Trained LLMs---a framework for amortizing distillation across both axes of a model family: size and post-training variant, producing $L \times K$ models for $L$ interpolated sizes across $K$ post-trained variants with a single distillation run. ADAPT combines two components. First, a two-phase distillation procedure constructs post-trained students through pre-training alignment and supervised fine-tuning distillation, enabling smooth size--performance interpolation on generation and reasoning tasks. Second, weight-delta initialization approximates this construction across post-trained variants by transferring the distillation-induced weight change from the base model to students initialized from different post-trained variants. The resulting continuum of interpolated models also enables adaptive model-size selection at inference time, improving the compute--accuracy trade-off for long-form reasoning tasks.