Reinforced Latent Reasoning for LLM-based Recommendation
Authors: Yang Zhang
Wenxin Xu
Xiaoyan Zhao
Wenjie Wang
Fuli Feng
Xiangnan He
Tat-Seng Chua
Venue: ICLR 2026 Poster (2026)
Keywords: Latent reasoning
Recommendation
Primary area: learning on time series and dynamical systems

Abstract: Large Language Models (LLMs) have demonstrated impressive reasoning capabilities in complex problem-solving tasks, sparking growing interest in their application to preference reasoning in recommendation systems. Existing methods typically rely on fine-tuning with explicit chain-of-thought (CoT) data. However, these methods face significant practical limitations due to (1) the difficulty of obtaining high-quality CoT data in recommendation and (2) the high inference latency caused by generating CoT reasoning. 
In this work, we explore an alternative approach that shifts from explicit CoT reasoning to compact, information-dense latent reasoning. This approach eliminates the need for explicit CoT generation and improves inference efficiency, as few latent tokens can effectively capture the entire reasoning process. 
Building on this idea, we propose \textit{\underline{R}einforced \underline{Latent} \underline{R}easoning for \underline{R}ecommendation} (LatentR$^3$), a novel end-to-end training framework that leverages reinforcement learning (RL) to optimize latent reasoning without relying on any CoT data.
LatentR$^3$ adopts a two-stage training strategy: first, supervised fine-tuning to initialize the latent reasoning module, followed by pure RL training to encourage exploration through a rule-based reward design. Our RL implementation is based on a modified GRPO algorithm, which reduces computational overhead during training and introduces continuous reward signals for more efficient learning.
Extensive experiments demonstrate that LatentR$^3$ enables effective latent reasoning without any direct supervision of the reasoning process, significantly improving performance when integrated with different LLM-based recommendation methods. Our codes are available at \url{https://github.com/xuwenxinedu/R3} .

Published as a conference paper at ICLR 2026
REINFORCED LATENT REASONING FOR LLM-BASED RECOMMENDATION
Yang Zhang Wenxin Xu Xiaoyan Zhao't
Wenjie Wang² Fuli Fengat
Xiangnan He Tat-Seng Chua'
NNationll University of Singapore UUniversity of Science and Technology of China National Engineering Laboratory for BITA, University of Science and Technology of China zyangl 5806 gmail com, xuwenxinêmail ustcc.cc... edu. cn
ABSTRACT
Large Language Models (LLMs) have demonstrated impressive reasoning ca- pabilities in complex problem-solving tasks, sparking growing interest their application to preference reasoning in recommendation systems. Existing methods typically rely on fine-tuning with explicit chain-of-thoughh (CoT) data. However, these methods face significant practical limitations due to (1) the difficulty of obtaining high-quality CoT data in recommendation and (2) the high inference latency caused by generating CoT reasoning. In this work, we explore alternative approach that shifts from explicit CoT reasoning to compact, information-dent latent reasoning. This approach eliminates the need for explicit CoT generation and improves inference efficiency. as few latent tokens can effectively capture the entire reasoning process. Building this idea, propose Reinforced Latent Reasoning for Recommendation (LatentR²), ), novel end-to-end training framework that lever- ages reinforcement learning (RL) optimize latent reasoning without relying on any CoT data. LatentRa adopts a two-stage training strategy: first, supervised fine- tuning initialize the latent reasoning module, followed by pure RL training to encourage exploration through a rulc-based reward design. Our RL implementation is based on a modified GRPO algorithm, which reduces computational overhead during training and introduces continuous reward signals for more efficient learning. Extensive experiments demonstrate that LatentR enables effective latent reasoning without any direct supervision of the reasoning process, significantly improving performance when integrated with different LLM-based recommendation methods. Our codes are available at https:/ ////t/gtthh/////// com/ wwwp//wwww/ww/e///////eee
INTRODUCTION
Enhancing the reasoning capabilities Large Language Models (LLMs) has been a central research objective since the LLMs' emergence, with recent advances-st such as DeepSeek-RI R1 (Guo al., 2025) and OpenAl-ol (OpenAI, 2024)-fueling a surge of interest in this direction. By being trained architected to reason more deliberately through techniques like chain-of chain-of-thouuht (CoT) (Wei et al., 2022) reasoning. L.MMs have demonstrated remarkable progress tackling complex real-world problems (Xu al., 2025; Shao et al., 2024), rivaling
surpassing human PhD--eevel perfor- mance in certain cases (OpenAI, 2024). These developments have generated growing enthusiasm for applying LLM reasoning to downstream tasks, including one key Al application for information access recommender systems (Tsai et al., 2024: Bismay et al., 2025). For recommendation, the core lies in reasoning user preferences from historical behaviors (Tsai al., 2024), which only implicitly indicate preference. This is well aligned with the strengths of L.M reasoning, offering the potential to unlock new paradigms for personalized recommendation.
Existing approaches to LLM reasoning for recommendation typically rely on explicit textual reasoning (i.e., thhough,, CoT) data to fine-tune models and enhance their reasoning capabilities (Bismay et al., 2025; Tsai et al., 2024; Fang et al., 2025), following trends in general LLM reasoning
"Equal contribution.
"ooresppnniig authors. Email: Sty.zhaa2333, fuli Feng93) @gma i com

---

Published as a conference paper at ICLR 2026
tasks. However, applying this paradigm in recommendation presents fundamental challenges. First, these methods necessitate generating explicit CoT reasoning during inference. which would incur prohibitive computational costs and caanncy-critici concerns for real-world deployment. Second, collecting high-quality supervision CoT data for effective tuning is difficult: 1) user feedback in recommendation is usually limited to final outcomes, with no access to underlying reasoning; and 2) the subjective, personalized nature of preferences (Tsai et al., 2024) makes manual annotation or synthesis obtain CoT data both costly and unreliable. All these limitations restrict the practical applicability of current explicit COT methods. To address this, we pose central question: Can we eliminate the need for explicit CoT reasoning at both the tuning and inference, while still unleashing the reasoning potential of LLM for recommendation?
promising direction to move from natural language reasoning to latent reasoning (Hao et al., 2024), where LLMs reason directly in their hidden representation space, eliminating the need for explicit textual CoT reasoning. Moreover, because hidden states have much higher information density than textual tokens, compact latent representations can encode complex reasoning processes. This alleviates the need for lengthy reasoning chains (Su et al., 2025) and thus enables more efficient inference. Yet, existing latent reasoning methods in general domains are not directly applicable to our goal, as they still rely on explicit CoT supervision to learn latent reasoning (Hao et al., 2024), such by distilling CoT reasoning into latent reasoning.
This work explores learning latent reasoning without relying on any explicit CoT data, in an end-to- end optimization manner. Achieving this is challenging, as the only available signal for reasoning supervision is weak, coming soiely from final user feedback, with no direct guidance on the reasoning process itself. Inspired by the recent success of reinforcement learning (RL) in learning explicit CoT reasoning strategies without CoT supervision, such as DeepSeek-R1 R1-Zero (Guo et al., 2025), we investigate the use of RL to achieve this goal. However, directly applying RL training' can be unstable and prone to collapse, particularly given the vast, high- sigh--imensional space of latent reasoning. To mitigate this, we adopt a two-stage training strategy inspired by DeepSeek-RI (Guo et al., 2025). In the first stage, we apply supervised fine-tuning to warm up the latent reasoning module, providing a strong initialization. In the second stage, we conduct pure RL training with a rule-based reward to promote exploration and further improve the reasoning ability.
Taking a step further, our RL approach builds on the GRPO algorithm (Shao et al., 2024), with task- specific modifications to the reward design. In its original main form, GRPO assigns discrete reward (e.g., binary) by comparing each generated answer to ground truth, requiring full autoregressive answer generation for each sampled reasoning path-resulting in substantial computational overhead. To address this, we modify the reward to use the perplexity of the target item as a proxy, thereby eliminating the need for costly answer generation during training. This also produces continuous reward signal, which could provide richer learning feedback and may facilitate more efficient optimization. Furthermore, we shift from group-relative advantage a batch-relative advantage by using the batch average reward as the baseline for advantage computation. This adjustment addresses the issue in our continuous reward setting, where the group-relative method could assign unreliable positive advantages, even if the entire group exhibits low-quality reasoning. Since our method operates with RL, we refer to it as Reinforced Latent Reusoning for Recommendation (LatentR*),
The main contribution of this work can be summarized as follows:
We highlight that latent reasoning provides a practical and latency-efficient method for integrat- ing LLM reasoning into recommendation systems and propose to achieve latent reasoning in recommendations without relying on explicit CoT data.
We propose LatentR, new method that enables latent reasoning with zero-shot CoT examples through a carefully designed RL framework. It features a novel reward formulation and an improved advantage computation mechanism guide the optimization process of latent reasoning.
We conduct extensive experiments on real-workh datasets, demonstrating that without explicit CoT data, our latent reasoning approach can yield significant performance improvements.
That means performing RL. training from scratch.
2

---

Published as a conference paper at ICLR 2026
Model Architecture
Training Strategy
Stage1: Narm-up -uning
LLM LatentRATT
Lyorn
LatenCRATT
[Next Token Prediction]
Trush
Stage2: RL-based Tuning
Large Language Model
Groupa
Botch
Batchh
[Prompt]
C
r2
Sempling [=Noiae]
Reword
PPL
Bot ch Level Advantage
Figure 1: An illustration of the model architecture and training strategy of the proposed LatentR On the architectural side, LatentRATT layer is introduced to generate latent reasoning continuous tokens. The training follows two-stage framework: the first stage performs warm-up tuning via supervised fine-tuning (SFT), while the second stage applies RL based on a modified GRPO, termed LR-GRPO, to further optimize the reasoning.
PROBLEM DEFINITION
Let D denote the collected recommendation data, and let (u, h, y) E D denote an instance, where is user, h is the user's historical interactions, and y the next item the user interacts with. Both h and y are described using textual information (e.g., item titles). To leverage the capabilities of LLMs, we reformulate the recommendation task natural language problem. Specifically, for each data point (u. h, y). we convert the historical interactions into textual prompt xr, which is then input to the LLM to generate a next-item recommendation, denoting the token length as |ær]. Thereafter, we can also represent data point by (z, y). Given that user preferences are implicitly and intricately embedded in the historical data, we avoid asking the LLM to produce the recommendation directly. Instead, introduce thinking process that encourages the model to first perform intermediate reasoning before generating the final output, which can be formulated as:
LLM(w)
LLM(3.)), 9.
(1)
where r denotes the LLM's intermediate reasoning output, i.e., thoughts, and ğ is the final predicted item. Importantly, aim for this reasoning process to be efficient and learnable without requiring additional supervision in the form explicit reasoning data (CoT annotations). other words, we train the LLM to perform recommendaiion-oriinteed reasoning directly from D, without relying externally annotated CoT data?.
METHODOLOGG
We propose achieving inference-efficiens explicit CoT-free reasoning through reasoning the latent space and leveraging RI. to enable reasoning learning. This forms our method, Reinforced Latent Reasoning for Recommendation (LatentR3). shown in Figure LatentR 3 has key designs both the reasoning architecture and the learning strategy side:
Latent Reasoning Architecture. To enable latent reasoning, LatentR² adds attention layer on top the LLM's final decoding layer, denoted by "LatentRATT". This layer extracts information from the final hidden states of the LLM to generate latent reasoning tokens (hidden states) aligned with the LLM's input embedding space, in an autoregressive manner. Together, the LLM and this generation layer constitute the full reasoning model.
Althouggh Rec-R1 (Lin al., 2025a) is similar to DeepSeek-R R 1-zero (learning without CoT), it focuses on learning query rewriting and summarization for recommendation rather than general reasoning.
3

---

Published as a conference paper at ICLR 2026
Reinforced Learning. Given the lack of direct supervision for the reasoning process, the model must learn latent reasoning from final output signals. To enable the model to effectively learn latent reasoning, use reinforcement learning approach consisting of two stages: 1) Warm-up Fine-Tumin Tine-Tuning, which warms up the latent reasoning model through supervised fine-tuning, providing meaningful initialization for the subsequent RL stage, and 2) RL-based Tuning, which applies pure RL to encourage exploration of reasoning and further enhance its reasoning capabilities. The RL stage implemented using the GRPO method, with customized designs for sampling, reward, and advantage estimation to align with our specific requirements.
Next, we present the details of our latent reasoning architecture, followed by an explanation of the reinforced learning method.
3.1 LATENT REASONING ARCHITECTURE
Before generating the final answer, we guide the LLM to first produce reasoning tokens in a continuous latent space to simulate slow thinking. Unlike prior work that directly uses hidden states from the LLM's decoding layers as latent thoughts within the input embedding space, we introduce an additional attention layer on top of the final decoding layer to explicitly generate latent thought tokens. This layer serves two key purposes: (1) functioning as a specialized reasoning token generator that aggregates contextual information produce coherent latent thoughts, and (2) aligning the latent reasoning tokens more seamlessly with the LLM's input embedding space.
Formally, given a data point converted into the prompt format (x. y), the i-th reasoning token generation, we first obtain the hidden states from the LLM's final decoding layer by inputting along with all previously generated latent reasoning tokens. We then apply our additional attention layer to these hidden states and take the last- last-position output as the next latent reasoning token. Formally,
H LLM (I, ".. "I,,
rg = LatemRRATT
where LLM-I() denotes the output of the LLM's final decoding layer; ri....,Pi-1 are the pre- viously generated latent reasoning tokens; and H;-1 E (R(=+ti-i)xd represents the corresponding sequence of hidden states produced by L.LM--(-),, with dimensionality "LatentRATT refers to additional attention layer for generating latent reasoning tokens. Finally, ry E IRd denotes the i-th generated latent reasoning token.
Final Generation. After generating N latent reasoning tokens form the final reasoning thought r = [ri,,.., N. we concatenate x and r as the input to the LLM for next-item prediction. Here, N a hyperparameter controlling the length of the latent reasoning sequence, and under our framework. minimal N (e.g., N = 1) can achieve strong performance.
3.2 REINFORCED LEARNING
We leverage RL to facilitate the effective learning of latent reasoning. Inspired by DeepSeck-R1, instead of performing RI from scratch, we first use supervised fine-tuning to warm up the model, providing strong initial model for RL tuning. We then apply the pure RL to explore better reasoning, forming a two-stage tuning strategy. Next, we introduce each of these stages in detail.
3.2.1 WARM-UP FINE- -UNNIG
Training RL from scratch can lead to instability and potential collapse, especially considering the vast, high-dimensional space of latent reasoning. To mitigate this, we first perform SFT to warm up the reasoning model, providing solid initialization. Specifically, a standard next-token prediction task, enabling the model to generate meaningful latent reasoning tokens that enhance recommendation performance. The tuning objective formulated follows:
fine-tune the full model using
ming
Trearm
Σ
log Polos,o,,,
(4)
(x,g)ED 1
4

---

Published as a conference paper at ICLR 2026
where y, denotes the i-th token of ly| denotes the total number of tokens in y, and Po(ys 2z, M-+) LLM(a, r, yes) denotes the predicted probability of y given the previous generations yes, latent reasoning r. and z; 0 represents the total model parameters including those of the original LLM and our "LateenRRATT layer, and Leaar denotes the final total loss.
3.2.2 RL-BASED TUNING
Although the model may have gained some preliminary latent reasoning capabilities through SFT, its performance remains insufficient, as it might focus solely on data fitting rather than exploring optimal reasoning paths, leading to suboptimal outcomes. To address this, we consider leveraging RL training facilitate exploration of more diverse reasoning paths, using the SFT results from the first stage as the initialization for further learning.
Given the demonstrated success of GRPO in DeepSeek-RI (Guo al., 2025), we adopt it as the foundation for implementing our RL training. Generally, GRPO operates in four steps: (1) sampling of textual outputs from the old policy model; (2) computing binary reward for each output; (3) calculating the advantage by comparing the group average reward; and (4) performing policy updates based on the advantage. To better align with our latent reasoning approach and enhance training efficiency, we introduce specific modifications to the first three steps, resulting in our new GRPO variant, termed LR-GRPO. short, (1) we sample latent reasoning tokens in continuous space via the reparameterization trick rather than in textual space, (2) employ perplexity-based rewards, and (3) compute advantages relative to the batch-level average reward instead of the group-level to enhance learning under the new reward design. We now elaborate on these modifications:
Sampling. Since our latent reasoning operates in a continuous space, cannot be directly sampled like discrete textual tokens in standard GRPO. To address this, we leverage the Reparameterization Trick (Kingma et al., 2013; 2015), treating the generated latent reasoning vector as the mean of a Gaussian distribution. For each training sample (xr, y) with its corresponding latent reasoning vector r, we draw K samples of reasoning. Formally, the k-th sampled reasoning (I * 1) is sampled as:
p =r c C~0,00,"
(5)
where (0, o²) is a Gaussian distribution with zero mean and variance 0², denotes the sampled noise, and a can be thought of as hyperparameter controlling the noise strength. Additionally, we include the original r as the stt sample, i.e., =r.
Reward Design. After obtaining multiple latent reasoning samples in diverse directions, we evaluate which direction yields better outcomes by computing a reward for each. In the original GRPO, autoregressive decoding is used to generate the final output for each sample, and rewards are computed based on the quality of these outputs. However, this process is computationally expensive due to the need for full autoregressive decoding. To improve training efficiency, we instead propose using the model's perplexity (PPL) on the ground-truth answer as a proxy for the reward. This approach allows for faster evaluation.
Specifically, we construct the LLM input by combining the original prompt. each sampled latent reasoning vector, and the ground-truth answer. We then compute the model's perplexity for predicting the ground-truth tokens and use its negative value as the reward to evaluate the quality each latent reasoning. Formally, the reward for the k-th sampled latent reasoning n* is defined
lvl
* = -eepp
Togno(uila (,, ,es)))
(6)
lovl
Here, my represents the current policy model (ie., the current reasoning model), and To(ys (z,, r* Mei)) denotes the predicted probability for the i-th token y. The rewards corresponding the group of sampled reasoning instances are denoted S S= s. Notably, the rewards are continuous rather than discrete.
Advantage Design. After obtaining the reward scores, we compute the advantage. In the original GRPO, the advantage for each sampled reasoning instance is computed by comparing its reward to the average reward within the same sampling group. However, since our rewards continuous, this approach may still yield positive advantages even when all samples in the group are of low quality, thus producing unreliable advantage signals. To mitigate this issue, instead compute the advantage
5

---

Published as a conference paper at ICLR 2026
by comparing each reward to the batch-level average reward. Specifically, for sampled reasoning T* with reward score s the advantage is computed as:
A Satch Sbatch
Shatch
where Statch denotes the batch of sampling groups, and Shatch represents the batch-level average reward, computed over the 1-st sample (i.e., the original reasoning before adding noise) from each group. Formally, it is given by Sbutch N. Nyroup _s=(s" "=s="""...."**]ES"" "...s"]SSsacch s where Ngroup denotes the number of groups in this batch. Lastly, || denotes the L2 norm.
Policy Update. After obtaining the advantage, we update our model way similar to GRPO. The optimization objective is formulated as follows:
K
To (Wle I. r Nes))
LGRPO
Σ
(Vl I.rr yes)) A -
(8)
K
(2,N)ED
Notably, to reduce computational cost, we update only the "LattenRRTTT" layer while keeping the original LLM layers frozen. As result, the second Kl.-divergence term, ID) 1 (myl ) becomes zero in the GRPO implementation.
4 EXPERIMENTS
In this section, we conduct experiments answer the following research questions: RQ1: How does the overall recommendation performance of our proposed LatentR² method compare to existing recommendation methods? RQ2: Where do the improvements of LatentR* come from? RQ3: How do different design choices and reasoning hyperparameters affect the effectiveness of our method?
4.1 EXPERIMENTAL. SETTINGS
Dataset. In line with prior LL.M-bssed recommendation studies, evaluate method several Amazon domain-specifet datasets, including Toys, CDs, Games and Instruments. We adopt the standard preprocessing procedure that preserves chronological order for data filtering and splitting, with detailed steps and dataset statistics provided in Appendix A.
Compared Methods. We consider the top-N recommendation task and compare our LatentR with: (1) traditional sequential models, including Caser (Tang Wang, 2018), GRU4Rec (Hidasi & Karatzoglou, 2018), and SASRec (Kang & McAuley, 201 2018); and (2) LLM-based approaches, including Base (direct LLM recommendation) COT (Tsai et al., 2024), AlphaRec (Sheng et al., 2025), BIGRee (Bao et al., 2025), and D (Bao et al., 2024). AlphaRec is state-of-the-an embedding- enhanced model, while 3 a ttate-of-the-ee art generative recommender. We implement LatentR provided in Appendix B.
on both BIGRec and 3 Details basclines and implementation Here, for explicit reasoning, we only include the direct CoT baseline. Other reasoning methods for recommendation mainly focus rating prediction and require CoT supervision, We have tried learning explicit reasoning without CoT supervision via RL, but performed poorly (Appendix D), and we thus also omit it here. We also exclude general latent reasoning methods since they rely on CoT data, but include a no-RL variant in ablation study as their adaptation to our setting.
exclude them.
Evaluation settings. We evaluate the top-N recommendation effectiveness using Hit Ratio (HR @N) and Normalized Discounted Cumulative Gain (NDCG@N), with N set to 5 and 10. For brevity, we denote HR @5 and NDCG@S 5 as H@5 and N@5, respectively, similarly for @ 10' cases.
4.2 MAIN RESULTS (RQ1)
Table 1 presents the overall performance comparison between method and the baselines, including both traditional (Caser, GRU4Rec. SASRec) and LLM- (w/o tuning: Base, COT; w/ tuning: AlphaRec, BIGRec, D²) approaches. From the results, draw the following findings:

---

Published as a conference paper at ICLR 2026
Table 1: Top-N recommendation performance of LatentR² versus baselines. "RI." indicates the relative improvement of LatentR on D over each baseline (for the BIGRec column, "RI." uses LatentR on BIGRec) across all datasets and metrics. Bold values denote the best results. The analysis of statistical significance is reported in the Appendix E, and our results are statistically significant.
Mothods
Traditional
LLM-based
Dataset
Metrics
Caser
GRU4Ree
SASRce
Basc
COT
AlphaRoc
BIGRee
+LatcutR*
D
+Larentk'
H@s
0.0251
0,0417
0.0601
0,0203
0.0261
0.0579
0.0701
0.0821
0.0830
0.0898
H@
0.0384
0.0564
0.0760
0.0359
0.0496
0.0893
0.0931
0.1107
0.1026
0.1152
Toys
NB5
0.0170
0.0305
0.0458
0.0128
0.0153
0.0347
0.0508
0.0600
0,0610
0.0670
N@10
0,0214
0.0352
0,0510
0.0178
0.0229
0.0448
0.05K2
0.0693
0.0752
H@S
0,0469
0.0481
0.0841
0.0195
0.0302
0.0479
0,0757
0.0934
0.1122
0.1137
CDs
N@5
10
0,0312
0.0689
0.0365
0,0669
0.0622
0.1054
0.0252
0.0148
0.0406
0.0213
0.0278
0.0616
0.1160
0.0754
0.0906
0.0915
N@
0.0382
0.0425
0.0691
0.0167
0.0246
0.0373
0.0672
0.0826
0.0955
0.0977
H@S
0.0524
0.0322
0.0416
0.0236
0.0120
0.0558
0.0461
0.0580
0.0608
0.0716
H@ 10
0.0538
0.0517
0.0633
0.0311
0.0194
0.0893
0.0709
0.0870
0.0860
0.1006
N@5
0.0211
0.0207
0.0280
0.0190
0.0082
0.0397
0,0334
0.0413
0.0423
0.0507
Nē 10
0,0280
0.0270
0.0350
0.0214
0.0105
0.0515
0,0414
0.0506
0,0505
0.0601
H
0.0781
0.0766
0.0793
0.0154
0.0135
0.0813
0.0938
0.1029
0,0984
0.1066
Instruments
H@ 10
0.0977
0,0960
0.0950
0,0192
0.0199
0.1051
0.1158
0.1214
0.1167
0.1229
N@5
0.0564
0.0630
0.0708
0.0296
0.0261
0.0564
0,0807
0.0882
0.0848
0.0920
N@ 10
0.0627
0.0692
0.0758
0.0411
0.0452
0.0640
0.0879
0.0941
0,0907
0.0973
RI
85.8%
67.8%
27.9%
266.8%
245.9%
38.8%
17.0%
8.4%
The best version of our method (LatentR* applied to D demonstrates superior performance compared to all existing approaches across all metrics on all three datasets, consistently validating the effectiveness of our proposed methodology.
Focusing on the comparison among the LLM-based methods with recommendttion-seetiii tuning. those that use LLMs recommenders (BIGRec and D outperform the method that leverages LLMs to enhance traditional models (AlphaRee) on the Toys, CDs, and Instruments, but underper- form on Games. After applying our LatentR², the performance of both BIGRee and D improves significantly, with BIGRec achieving a relative improvement (RI) of 17.0% and D achieving an RI of 8.4%. Furthermore, the enhanced models surpass AlphaRec. These results show that I) incorporating latent reasoning substantially improves the performance of the I.LM- methods; 2) our latent reasoning method can be applied to different existing I.L.-baseed methods.
Directly using LLMs for recommendation without tuning (Base) performs substantially worse than traditional methods. Adding explicit reasoning via CoT provides slight improvements but still largely falls short of traditional baselines. After tuning, the best rest-performing LLM- baM-d basclines outperform traditional models in nearly all cases. These results underscore the importance of explicitly aligning LLMs LLMM--inluddng their reasoning sapabilities-witt the recommendation task.
To further validate our method, Appendix F compares Latent with BIGRec on a larger LLM,, showing consistent gains, and Appendix C provides additional results on a non-Amazon dataset, where our method continues to achieve better performance.
Efficiency Comparison: Beyond accuracy, big advantage of our method is that it needs only few latent tokens (one in our experiments) to represent reasoning, greatly reducing inference latency. An empirical study on four datasets (Appendix G) shows that our method maintains cost close to non-reasoning LLM baselines, whereas explicit COT incurs a substantial increase (e.g., a 25-fold increase on Toys and nearly a 30-fold increase Games).
4.3 IN-DEPTH ANALYSIS (RQ2 & RQ3)
In this section, we first analyze the performance improvements of our method across different item groups to understand where the gains originate. We then investigate the impact of various factors on the method's effectiveness, starting with ablation studies to assess the contribution of each design component, followed by an analysis of the reasoning length. Lastly, we compare our modified GRPO with the original GRPO method. To reduce the computational cost (RL), we limit our analysis to the Toys and CDs datasets, except for the study analyzing the source of performance gains. Besides, we also study the Applicability of our method to other models in Appendix M.
7

---

Published as a conference paper at ICLR 2026
Table 2: Ablation study results the Toys and CDs datasets. The best results highlighted in bold.
Toys
CDs
Method
H@5
H@10
N@5
N@ 10
H@5
H@
N@5
LatentR
0.0821
0.1107
0.0600
0.0693
0.0934
0.1160
0.0754
0.0826
w/o Reasoning
0.0701
0.0931
0.0508
0.0582
0.0757
0.0929
0.0616
0.0672
w/o LatentRATT
0.0772
0.1040
0.0574
0.0661
0.0705
0.0875
0.0568
0.0624
w/o RL (unly SFT)
0.0804
0.1067
0.0584
0.0669
0.0830
0.1005
0.0662
0.0719
w/o Batch Advantage
0.0812
0.1083
0.0589
0.0676
0.0828
0.1002
0.0661
0.0718
4.3.1 PERFORMANCE OVER POPULAR AND UNPOPULAR ITEMS
For latent reasoning. it is diffi- cult directly demonstrate why it leads to performance improve- ments, as can be done with ex- con-
Popular
Ung-spular
Unpopular
13.15
plicit COT. Therefore, sider providing indirect evidence. Intuitively, reasoning should be more beneficial for the more challenging aspects of recom- mendation, where it is expected to deliver greater gains. Long- tail (i.e., unpopular) items are typically more difficult recom- mend accurately, while existing methods already perform well on popular items. To test this hypothesis, we examine whether our method yields greater improvements on unpopular items. Specifically, we compare the relative performance gains of our method over BIGRec across items with different popularity levels. The results are shown in Figure 2 (see Appendix H for more results and experimental settings). As shown, our method achieves significantly larger improvements on unpopular items, suggesting that the incorporation of reasoning is particularly beneficial in more challenging recommendation scenarios.
30
Impir on
Imppr.
10-
1.20
Toys
GDs
Games Instruments
Toys
CDs
Games Instruments
Figure 2: Performance improvement of LatentR over BIGRec both popular and unpopular items.
4.3.2 ABLATION STUDY
Our method features key innovations in both the model architecture and the learning algorithm. To assess the contribution of each component, conduct ablation studies both aspects. Specifically, we evaluate the following variants of our method: 1) w/o Reasoning, which removes the latent reasoning component entirely. 2) w/o LatentRATT. which omits the LatentRATT layer and directly uses the final hidden states from the LLM to construct the latent reasoning token; 3) w/o RL, which trains the reasoning model using only SFT without RI; 4) w/o Batch Advantage, which replaces batch-based advantage estimation with the original GRPO setting that computes advantages with a group average reward. Specifically, variants 1) w/o Reasoning, 2) w/o LatentRATT. and w/o RL are fully fine-tuned, while variant 4) w/o Batch Advantage is fully fine-tuned during SFT but only the LatentRATT layer is tuned during RL. Notably, regarding the reward design, we would study it later when compared to the original GRPO. We conduct experiments on the Toys and CDs datasets.
The comparison results are summarized in Table From the architectural perspective, removing the LatentRATT layer leads to a significant performance drop. On the CDs dataset, this variant even underperforms the "w/o Reasoning" version, underscoring the importance of LatentRATT in generating meaningful and space-aligned reasoning outputs. From the learning algorithm side, the "w/o RL" wahic only uses SFT-performs better than the "w/o Reasoning" version, indicating that SFT can partially enable latent reasoning. However, its performance remains inferior to the full method with RL, confirming that effective latent reasoning learning relies on reinforcement training. Furthermore, replacing the batch-based advantage with the original GRPO's advantage (as in "w/o Batch Advantage") results in comparable or worse performance than the "w/o RL" version, demonstrating the necessity of batch-based reward estimation for stable RL learning under our reward
8

---

Published as a conference paper at ICLR 2026
design. Overall, these findings highlight the critical roles of both architectural and learning algorithm designs the method's effecctivensss See Appendix for training time analysis.
4.3.3 INFLUENCE OF REASONING LENGTH
We next investigate how the length latent reasoning affects model performance by varying the number of generated latent tokens (K)) Considering the cost of RL tuning. we just tune K in [0.1,2], and conducted exper- iments on Toys and CDs. The results in terms of NDCG@5 (N@5) and HR @5 (H@S) are shown in Figure other metrics and the detailed im- plementations can found in Appendix K. As shown, increas- ing the reasoning length improves performance, demonstrating the potential to achieve even better results by increasing the reasoning length. However, the gain from K=1 to K=2 much smaller than from K=0 to K=1, suggesting that a few latent tokens may be sufficient to capture most of the reasoning information.
Toys
Toys
0.07
CDs
0.09
CDs
N@5
H@s
0.06
0.08
0.05
0.07
Reasoning Length
Reasoning Length
Results for
Figure 3: Impact of Reasoning Length on LatentR 3 Performance.
4.3.4 COMPARISON WITH THE ORIGINAL GRPO
We also compare our LR-GRPO with the original GRPO, which relies on generating complete an- swers for reward computation for group sampling, evaluate its
Ours
Training (minutes)
GRPO
H@5
GRPO
+1.6%
Ours
240
effectiveness. To improve train-
ing efficiency, propose ing the model's perplexity (PPL) on the ground-truth answer proxy for the reward. This yields continuous reward signal and motivates adjustments to the ad- vantage computation. assess the impact of these modifications, we implement variant of our method using the original GRPO. The comparison results on the CDs dataset shown in Figure 4, with additional results and implementation details provided in Appendix L. In terms of performance, our method achieves results comparable to the variant using original GRPO slightly outperforming it CDs while performing slightly worse Toys (see Appendix L). In terms of training efficiency, our method significantly faster, reducing the training cost approximately 1/4 of that of the original GRPO. These findings validate the rationale of modifications.
0.00
160
N@10 43.3%
HB10
N85
Ours
GRPO
Figure 4: Comparison the original GRPO regarding Perfor-
mance (Left) and efficiency (Right).
RELATED WORK
Our work relates to LLM-based recommendation and latent reasoning. Due to space limits, we briefly cover LLM-based recommendation and reasoning methods here; a full review is in Appendix N. Existing works include three main LLM- based recommendation paradigms: (1) in-context learn- ing (Gao et al., 2023; Sun et al., 2024; Wang et al., 2021). (2) agent- frameworks (Wang et al., 2023; Zhang et al., 2024a:b; Shi et al., 2024), and (3) fine-tuning- based methods (Bao et al., 2025; Zhang al., 2024c). Among these, the tene-tuning-basee solution has received the most

---

Published as a conference paper at ICLR 2026
attention due to its ability more effectively align LLMs with the task, and our work falls into this category. In this direction, only a few studies have explored reasoning, with existing works primarily aiming to enhance explicit CoT reasoning via fine-tuning, such as RecSAVER (Tsai et al., 2024), ReasoningRec (Bismay et al., 2025), Reasoning4Rec (Fang et al., 2025); Rdec (You et al., 2025), and Exp3rt (Kim et al.). However, these approaches rely heavily explicit CoT,, which is costly to obtain and typically leads to high inference latency. In contrast, our work introduces latent reasoning for LLM-based recommendation, which eliminates the need for CoT supervision and enables more efficient inference. As for latent reasoning, only two concurrent works (Tang et al., 2025; Zhang et al., 2025) have explored it, but neither focuses on LLM--base recommendation, and our approach to latent reasoning is fundamentally different and specifically focused on LLM-based recommendation.
CONCLUSION
In this work, we proposed LatentR*, a novel LLM-based recommendation framework that replaces explicit chain-of-thought reasoning with compact latent reasoning representations. By integrating architectural innovations such as the LatentRATT layer with a two-stage reinforcement learning strategy. LatentR enables efficient and effective preference reasoning without relying on costly CoT supervision. Extensive experiments show that our method significantly enhances the performance of existing LLM-based recommendation models, while introducing only minimal additional inference cost-equivalent to generating a single extra token. These results highlight the potential of latent reasoning as a practical and scalable alternative for LLM-based recommendation.
Limitations and Future Works. Following common practices for LLM-based recommendation works, our current experiments are limited to relatively small datasets due to the very high cost. In the future, we plan to explore the effectiveness of our method on diverse, large-scale datasets. Additionally, compared to explicit CoT, latent reasoning offers less interpretability. We plan to investigate ways to improve the explainability of latent reasoning, facilitating its wider adoption.
ETHICS STATEMENT
This work adheres to the ICLR Code of Ethics. Our research does not involve human subjects or sensitive personal data. Although we use some user interaction data, it is anonymized, publicly available, and does not contain any personally identifiable information. Moreover, we strictly follow the usage guidelines set by the dataset providers. However, when applying our method to broader scenarios the future, it would be advisable include additional user privacy protections, such as allowing users to control how their data is used and extending the approach to local learning settings. The experiments presented in this paper focus on algorithmic development and theoretical analysis, and do not entail any direct applications that could cause harm if misused. All authors have disclosed any potential conflicts of interest, and there are no financial or institutional relationships that may influence the objectivity of this research. The usage of L.MSs is provided in Appendix O.
REPRODUCIBILITY STATEMENT
To support reproducibility, we provide a detailed description all experimental settings, model architectures, and hyperparameters in Appendix B. Our code has been made available at https qithub. com/ for reproducing the main results. All datasets used are publicly accessible, and we provide the dataset preprocessing process in Appendix and the preprocessing script in our code.
R3,, including training scripts, evaluation scripts, and instructions
ACKNOWLEDGMENTS
This research is supported by the National Natural Science Foundation of China (U24B201 80). This research is supported by A*STAR under its Sapan-Singaport Joint Call: Japan Science and Technology Agency (JST) and Agency for Science, Technology and Research (A (A*STAR) 2024 (Award R2416IR142) 142). Any opinions, findings and conclusions or recommendations expressed in this material are those of the author(s) and do not reflect the views of the S
10

---

Published as a conference paper at ICLR 2026
REFERENCES
Keqin Bao, Jizhi Zhang. Yang Zhang, Xinyue Huo, Chong Chen, and Fuli Feng. Decoding matters: Addressing amplification bias and homogeneity issue in recommendations for large language models. In Yaser Al-Onaizan, Mohit Bansal, and Yun-Nung Chen (eds.), Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing, pp. 10540-10552, Miami, Florida, USA, November 2024. Association for Computational Linguistics. doi: 10. 589. URL https: http:::s//aaaaaathoooooooo org. 2024 emnlp-main 589.
Keqin Bao, Jizhi Zhang, Wenjie Wang, Yang Zhang, Zhengyi Yang, Yanchen Luo, Chong Chen, Fuli Feng, and Qi Tian. A bi-step grounding paradigm for large language models recommendation systems. ACM Transactions on Recommender Systems, 3(4):1-27, 2025.
Millennium Bismay, Xiangjue Dong, and James Caverlee. ReasoningRec: Bridging personalized rec- ommendations and cumman-nnterpreabbe explanations through LLM reasoning. In Luis Chiruzzo, Alan Ritter, and Lu Wang (eds.), Findings of the Association for Computational Linguisties: NAACL 2025, pp. 8132-81 148, A Albuquerque, New Mexico, April 2025. Association for Computa- tional Linguistics. ISBN 979-8 8-99--8-9911 176- 195-7. doi: 18618v 1/2025. finndiggs findings-naacl.4555 naacl.454. URL org/2025 2025. fi findings naacl. 454/.
Yuntian Deng, Kiran Prasad, Roland Fernandez, Paul Smolensky, Vishrav Chaudhary, and Stu- art Shieber. Implicit chain of thought reasoning via knowledge distillation. arXiv preprint arXiv:2311.014600 2023.
Yi Fang, Wenjie Wang, Yang Zhang, Fengbin Zhu, Qifan Wang. Fuli Feng, and Xiangnan He. Rea- son4rec: Large language models for recommendation with deliberative user preference alignment. CoRR, 2025.
Chongming Gao, Mengyao Gao, Chenxiao Fan, Shuai Yuan, Wentao Shi, and Xiangnan He. Process- supervised IIm recommenders via flow-guided tuning. In Proceedings of the 48th International ACM SIGIR Conference on Research and Development in Information Retrieval, SIGIR '25, pp. 1934-1943, 2025.
Yunfan Gao, Tao Sheng, Youlin Xiang, Yun Xiong, Haofen Wang, and Jiawei Zhang. Chat- rec: Towards interactive and explainable llms-augmented recommender system. arXiv preprint arXiv:2303.14524 2023.
Jonas Geiping, Sean McLeish, Neel Jain, John Kirchenbauer, Siddharth Singh, Brian R Bartoldson, Bhavya Kailkhura, Abhinav Bhatele, and Tom Goldstein. Scaling up test-time compute with latent reasoning: A recurrent depth approach. arXiv preprint arXiv:2502.05171, 2025.
Sachin Goyal, Ziwei Ji, Ankit Singh Rawat, Aditya Krishna Menon, Sanjiv Kumar, and Vaishnavh Nagarajan. Think before you speak: Training language models with pause tokens, 2024. URL org/ abs 22100 02226.
Daya Guo, Dejian Yang, Haowei Zhang, Junxiao Song, Peiyi Wang, Qihao Zhu, Runxin Xu, Ruoyu Zhang, Shirong Ma, Xiao Bi, and al. Deepseek-rl incentivizes reasoning in Ilms through reinforcement learning. Nature, 645(8081):633-638, 2025. ISSN 0028-0836. doi: 1038/
1115866-22-094222-
Shibo Hao, Sainbayar Sukhbaatar, DiJia Su, Xian Li, Zhiting Hu, Jason Weston, and Yuandong Tian. Training large language models reason in continuous latent space. arXiv preprint arXiv:2412.06769, 2024.
Balázs Hidasi and Alexandros Karatzoglou. Recurrent neural networks with top-k gains for session- based recommendations. In Proceedings of the 27th ACM international conference on information and knowledge management, pp. 843-852, 2018.
Yupeng Hou, Jianmo Ni, Zhankui He, Noveen Sachdeva, Wang-Chenn Kang, Ed H. Chi, Julian McAuley, and Derek Zhiyuan Cheng. Actionpiece: Contextually tokenizing action sequences for generative recommendation. Focty-second International Conference on Machine Learning, 2025. / http://wweee.eeeeeeeoooeoeeteeaa
11

---

Published as a conference paper at ICLR 2026
Wang-Chend Kang and Julian McAuley. Self-attentive sequential recommendation, In 2018 IEEE international conference on data mining (ICDM), pp. 197-206. IEEE, 2018
Jieyong Kim, Hyunseo Kim, Hyunjin Cho, SeongKu Kang, Buru Chang, Jinyoung Yeo, and Dongha Lee. deview-driven personalized preference reasoning with large language models for recommen- dation. corr, 222244008.676. 2024, doi: 10.48550. arXiv preprint ARXTV.2408.062.
Diederik Kingma, Max Welling, et al. Auto-cncoding variational bayes, 2013.
Durk Kingma, Tim Salimans, and Max Welling. Variational dropout and the local reparameterization trick. Advances in neural information processing systems, 28, 2015.
Jiacheng Lin, Tian Wang. and Kun Qian. Rec-rl: Bridging generative large language models and user-centric recommendation systems via reinforcement learning. Transactions on Machine Learning Research, 2025a. ISSN 2835-8856. URL https: /ttp:////ppeeeeeeeeeeeeee net forum?
Id=YBRU9MV2VE.
Zijie Lin, Yang Zhang, Xiaoyan Zhao, Fengbin ZHU, Fuli Feng, and Tat-Seng Chua. IGD: Token decisiveness modeling via information gain in LLMs for personalized recommendation. In The Thinty-ninth Annual Conference on Neural Information Processing Systems, 2025b. URL net/ wowooooddyggaaaCiiii.
https://cpenrett
OpenAL. Learning to reason with LLMs. learning to- reason with- 1lms/.m./....... 2024.
https://opents com/ index/
Zhihong Shao, Peiyi Wang, Qihao Zhu, Runxin Xu, Junxiao Song, Xiao Bi, Haowei Zhang, Mingchuan Zhang, YK Li, Y Wu, et al. Deepseekmath: Pushing the limits of mathematical reasoning in open language models. arXiv preprint arXiv:4402.03300, 2024.
Leheng Sheng, An Zhang, Yi Zhang, Yuxin Chen, Xiang Wang, and Tat-Seng Chua. Language representations can be what recommenders need: Findings and potentials. In The Thirteenth International Conference on Learning Representations, 2025. URL Lttt/EoormniddeeIeEE
Wentao Shi, Xiangnan He, Yang Zhang, Chongming Gao, Xinyue Li, Jizhi Zhang, Qifan Wang, and Fuli Feng. Large language models are learnable planners for long-term recommendation. In Proceedings of the 47th International ACM SIGIR Conference on Research and Development in Information Retrieval, pp. 1893-1903, 2024.
DiJia Su, Hanlin Zhu, Yingchen Xu, Jiantao Jiao, Yuandong Tian, and Qinqing Zheng. Token assorted: Mixing latent and text tokens for improved language model reasoning. arXiv preprint arXiv:2502.03275. 2025.
Zhu Sun, Hongyang Liu, Xinghua Qu, Kaidong Feng, Yan Wang, and Yew Soon Ong. Large language models for intent-driven session recommendations. Proceedings of the 47th International ACM SIGIR Conference on Research and Development in Information Retrieval, pp. 324-334, 2024.
Jiakai Tang, Sunhao Dai, Teng Shi, Jun Xu, Xu Chen, Wen Chen, Wu Jian, and Yuning Jiang. Think before recommend: Unleashing the latent reasoning power for sequential recommendation. arXiv preprint arXiv:2503.22675. 2025.
Jiaxi Tang and Ke Wang. Personalized top-n sequential recommendation via convolutional sequence embedding. In Proceedings of the eleventh ACM international conference on web search and data mining, pp. 565-573, 2018.
Qwen Team. Qwen2.5: A party of foundation models, September 2024. URL wwwphttppp.... lmw.nl.. comub.i./bloggg qwen2.52
Alicia Tsai, Adam Kraft, Long Jin, Chenwei Cai, Anahita Hosseini, Taibai Xu, Zemin Zhang, Lichan Hong, Ed H. Chi, and Xinyang Yi. Leveraging LLM reasoning enhances personalized recommender systems. In Lun- Wei Ku, Andre Martins, and Vivek Srikumar (eds.), Findings of the Association for Computational Linguistics: ACL 2024, pp. 13176-13188 Bangkok, Thailand, August 2024. Association for Computational Linguistics. doi: 10. 10.18653/v 1/2044 2.0.....iiigg-ac....... acl.78s-a URL https: / /acl anttoo
2024 f nd mnn-nngaacll 780/.
12

---

Published as a conference paper at ICLR 2026
Wenjie Wang. Fuli Feng, Xiangnan He, Xiang Wang. and Tat- Chua. Deconfounded recommen- dation for alleviating bias amplification. In Proceedings of the 27th ACM SIGKDD conference on knowledge discovery & data mining, pp. 1717-1725, 2021.
Yancheng Wang, Ziyan Jiang, Zheng Chen, Fan Yang, Yingxue Zhou, Eunah Cho, Xing Fan, Xiaojiang Huang, Yanbin Lu, and Yingzhen Yang. Reemind: Large language model powered agent for recommendation. arXiv preprint arXivv2308. 14296, 2023.
Jason Wei, Xuezhi Wang, Dale Schuurmans, Maarten Bosma, Fei Xia, Ed Chi, Quoc Le, Denny Zhou, et al. Chain-of-thougee prompting elicits reasoning large language models. Advances in neural information processing systems, 35:24824-24831 2022.
Fengli Xu, Qianyue Hao. Zefang Zong, Jingwei Wang. Yunke Zhang, Jingyi Wang. Xiaochong Lan, Jiahui Gong, Tianjian Ouyang, Fanjin Meng, al. Towards large reasoning models: A survey of reinforced reasoning with large language models. arXiv preprint arXiv:2501 0.6666..96.... 2025.
Runyang You, Yongqi Li, Xinyu Lin, Xin Zhang, Wenjie Wang, Wenjie Li, and Liqiang Nie. Rdec: Towards large recommender models with reasoning. arXiv preprint arXiv:2505. 16994, 2025.
An Zhang, Yuxin Chen, Leheng Sheng, Xiang Wang, and Tat-Seng Chua. On generative agents in recommendation. In Proceedings of the 47th international ACM SIGIR conference on research and development in Information Retrieval, pp. 1807-1817 2024a.
Junjie Zhang, Yupeng Hou, Ruobing Xie. Wenqi Sun, Julian McAuley, Wayne Xin Zhao, Leyu Lin, and Ji-Rong Wen. Agentef: Collaborative learning with autonomous language agents for recommender systems. In Proceedings of the ACM Web Conference 2024, pp. 3679-3689, 2024b.
Junjie Zhang, Beichen Zhang, Wenqi Sun, Hongyu Lu, Wayne Xin Zhao, Yu Chen, and Ji-Rong Wen. Slow thinking for sequential recommendation. arXiv preprint arXiv:2504.09627, 2025.
Rui Zhang, Yixin Su, Bayu Distiawan Trisedya, Xiaoyan Zhao, Min Yang, Hong Cheng, and Jianzhong Qi. Autoalign: Fully automatic and effective knowledge graph aligmment enabled by large language models. IEEE Transactions on Knowledge and Data Engineering, 36(6):2357- 2371, 2023.
Yang Zhang, Keqin Bao, Ming Yan, Wenjie Wang, Fuli Feng, and Xiangnan He. Text-like encod- ing of collaborative information in large language models for recommendation. arXiv preprint arXiv:2406.03210, 2024c.
Xiaoyan Zhao, Ming Yan, Yang Zhang, Yang Deng, Jian Wang, Fengbin Zhu, Yilun Qiu, Hong Cheng, and Tat-Seng Chua. Reinforced strategy optimization for conversational recommender systems via network-offeeeee offerr--f-experts.... arXiv preprint arXiv:2509.26993 2025.
Ziyi Zhao, Chongming Gao, Yang Zhang, Haoyan Liu, Weinan Gan, Huifeng Guo, Yong Liu, and Fuli Feng. Don't 't start over: A cost-effective framework for migrating personalized prompts between 1lms. The 40th Annual AAAI Conference on Artificial Intelligence (AAAI 2026), 2026.
A DATASET PRE-PROCESSING
Our experiments were conducted on data from Amazon, with primary evaluations performed on three domain-specific datasets: Toys, CDs, Games and Instruments. Following established methodology, we preprocessed each subset to achieve 5-core data integrity. To address the computational demands of LLM training while maintaining dataset validity, we implemented dynamic temporal partitioning strategy: We iteratively process the dataset within a sliding time window, starting from October 2017 to October 2018. After applying 5-core filtering, if the resulting item count falls below 5,000, the start time is shifted back by 3 months (e.g., to July 2017). This adjustment repeats until the processed dataset contains more than 5,000 items, with the end time fixed at October 2018 throughout the process. Key dataset statistics are summarized in the accompanying table3. To align with real- world scenarios, we adopt temporal split of the processed datasets into training, validation, and testing sets based timestamps, following 8:1:1 ratio. In aligmment with comparative baseline requirements across all experimental conditions, we standardized the maximum sequence length at 10 for consistency in temporal pattern analysis.
13

---

Published as a conference paper at ICLR 2026
Table 3: Dataset statistics.
Dataset
Train
Valid
Test
Item
Toys
53898
6737
6738
6299
CDs
49251
6156
6158
5841
Games
75175
9397
9397
5308
Instruments
66500
8312
8313
5030
B COMPARED METHODS AND IMPLEMENTATION DETAILS
Baselines. We consider the top-N recommendation task. To evaluate the effectiveness of our method, compare against both representative traditional sequential recommendation models and state-of-the-art (SOTA) LLM-based recommendation approaches:
Caser (Tang & Wang, 2018): This is well-known sequential recommendation approach that utilizes Convolutional Neural Networks (CNNs) capture sequential patterns and model user preferences.
GRU4Rec (Hidasi & Karatzoglou, 2018): This is another widely recognized method that leverages Gated Recurrent Units (GRUs) to encode sequential patterns and model user preferences.
SASRec (Kang& & McAuley, 2018): This a highly representative sequential recommendation method that utilizes a self-attention network model user preferences, with an architecture resembling that of the decoder-only Transformer model.
Base: This refers to the method that directly prompts the backbone LLM to perform the recommen- dation task.
COT (Tsai et al., 2024): This refers to the zero-shot version of Rec-SAVER, which uses CoT reasoning to prompt the LLM for recommendation, i.e., instructing the LLM to produce a reasoning process before generating the final results.
AlphaRec (Sheng et al., 2025): This is an SOTA LLM-based method that leverages LLM--genrateed embeddings to enhance the recommendation model.
BIGRee (Bao et al., 2025): This a representative LLM-based generative recommendation method that fine-tunes LLMs generate next-item predictions, with specific designs support full ranking.
D (Bao et al., 2024): This is SOTA LLM-based generative recommendation method. It follows similar fine-tuning process to BIGRec but differs in its inference strategy. Specifically, it introduces debiasing techniques during inference Additionally, it includes an ensemble design with traditional models; however, we omit this component our implementation to ensure a fair comparison.
enhance the quality of generated recommendations.
Our method, L is compatible with various LLM- generative recommendation ap- proaches. Accordingly, we implement it both BIGRec and D Notably, existing L.M reasoning methods for recommendation cannot be selected for comparison because: (1) they are not designed for top-N recommendation tasks, and (2) their training relies on explicit CoT supervision, which is difficult to obtain in our setting. To align with our setting, we also attempted to learn explicit CoT reasoning directly via RL; however, the results were very poor, as shown in Appendix D. Similarly, we exclude general-domatt latent reasoning methods for comparison, as they still depend on CoT data for learning. However, in our ablation study, we will include variant of our method without RL training, which can be viewed as an adaptation of the general latent reasoning method to our setting.
Implementation Details For traditional recommendation models, we use the Adam optimizer and perform grid searches over learning rates le-2, le-3, le-4 and weight decay values le-4, 1e-5, 1e-6, and all models are trained using Binary Cross-Entropy loss with randomly sampled negative items. For LLM-based methods, we use Qwen2.5-1.55 1. Team (2024) fine-tuning (SFT) is conducted using the AdamW optimizer, with learning rates selected from (3e-3, 3e-4, 3e-5), ), and early stopping is applied with a patience of 1. During the reinforcement learning stage, we search learning rates within [e-5, lc-4, 5e-4). All experiments are run on 2 NVIDIA A 110 GPUs.
the backbone LLM. Supervised
14

---

Published as a conference paper at ICLR 2026
Notably, BIGRec originally uses grounding brounding-based (matching) method for decoding items. In our implementation, we adopt a constrained decoding approach, as we found it yields better performance. This is supported by the empirical results the CDs dataset in Table 4.
Table 4: Performance of BIGRec using different decoding methods (1) Grounding and (2) Con- strained-on on the CDs dataset.
Decoding method
H@5
H@ 10
N@5
N@ 10
Grounding Decoding
0.0609
0.0670
0.0573
0.0592
Constrained Decoding
0.0757
0.0929
0.0616
0.0672
C RESULTS ON DATASET BEYOND AMAZON
We have included new dataset, Steam, which contains about 108K users, 15K items, and 314K interactions. The results are summarized in the Table and our method continues to deliver substantial performance improvements. Notably, many recent ID-based methods (Hou et al., 2025) are also evaluated on datasets with item counts similar to those in this experiment. As shown in the table, our method could still achieve large performance improvements compared to baselines.
D LEARNING EXPLICIT REASONING WITHOUT COT SUPERVISION VIA RL
We also experimented with directly optimizing CoT generation via RL, similar to DeepSeek-RIe Rl-zero, denoted as "COT-RI.." We compare with the following methods: Base, COT, and our LatentR3 The results are summarized in Table 6. As shown, both COT and COT-RL outperform the base LLM. However, applying RL to learn CoT reasoning without direct supervision fails to improve performance and can even degrade it. This is likely due the inherent difficulty of learning long CoT chains: correct sampling is challenging, and the learning process requires considerations beyond accuracy- such as output formatting- -wiech can reduce learning efficiency and lead to reward increases without corresponding performance gains.
E THE ANALYSIS OF STATISTICAL SIGNIFICANCE
In the main result (Table 1), disabled the sources of randomness address your concern, we enabled random sampling during generation and conducted a t-test between our method and the corresponding baseline (BIGRec). When reporting the averaged results, our method remains significantly better, with p-value 0.001, as shown in Table 7.
reproducibility. To
F PERFORMANCE ON LARGER LLM
We have further explored the effectiveness of our method larger LLM. Qwen2.5-3B Considering the high cost of LLM tuning, we focused on comparing our method with BIGRee on only one dataset CDs. Mcanwhile, given the much higher cost of RL tuning for larger LLMs, we apply LoRA-basee tniing to control training expenses under the use of larger L.MSs. The results are summarized in Table 8. As shown, method still delivers more substantial relative improvement the larger model, achieving an average performance gain of 40.7%.
G INFERENCE COST COMPARISON
Compared to non-reasoning LLM baselines, our method introduces the extra cost of generating latent reasoning tokens. However, since only a few tokens are used (one by default), the added cost is minimal. In contrast, explicit reasoning methods often require large and uncontrollable number of tokens, leading to significant overhead. We randomly selected 100 samples from each of the four datasets. Inference was performed using single A 100 GPU, with batch size set and beam size
15

---

Published as a conference paper at ICLR 2026
Table 5: Performance of LatentR* and baselines on the Steam dataset.
Method
H@5
H@10 10
N@5
N@ 10
Caser
0.0407
0.0685
0.0262
0.0351
GRU4Rec
0.0422
0.0721
0.0271
0.0367
SASRec
0.0390
0.0633
0.0251
0.0329
BIGRec 0.0559
0.0821
0.0405
0.0489
LatentR²
0.0630
0.0959
0.0451
0.0557
Table 6: Performance comparison of explicit reasoning learned via RL (without CoT supervision, denoted by "COT-RL", versus other methods.
Metrics
H@5
H@ 10
N@5
N@ 10
Base
0.0195
0.0252
0.0148
0.0167
COT 0.0302
0.0406
0.0213
0.0246
COT-RL
0.0297
0.0390
0.0202
0.0232
Ours
0.0934
0.1160
0.0754
0.0826
set to (the CoT method set to 1). Each measurement was taken three times and we report the average values, shown in the Figure 5. Because only single token is added, and the length of item titles inherently varies, our inference time almost identical to that of non-reasoning methods. However, explicit CoT methods are far expensive (COT).
H PERFORMANCE ON POPULAR AND UNPOPULAR ITEMS
Based on the frequency of items in the training set, consider the top 20% of items popular items and the other items as unpopular items. We then calculate the performance of BIGRec and LatentR for these two groups of items, and calculate the relative performance improvement each group. The specific results are shown in Figure 6.
To further validate method's ability recommend unpopular items, added SASRec results and compared the performance improvements of BIGRec and LatentR² over SASRec. The results on the Toys dataset are shown in Table where the absolute results N@ 10 also included. As shown in the table below, for the Toys dataset, BIGRec achieves comparable relative improvements over SASRec for long-tail and popular items (17.4% vs. 13.7%). In contrast, LatentR3 shows significantly larger relative improvement for long-tail items compared to popular items (53% vs.
BIGRec
Ours
COT
800
Inference (8)
500
300
60-
Toys
CDs
Games
Instruments
Figure 5: Inference time comparison across non-reasoning (BIGRec), LatentR (Ours), and explicit CoT methods (COT).
16

---

Published as a conference paper at ICLR 2026
Table 7: T-test results for BIGRec and LatentR' (applied to BIGRec) on the CDs dataset over five experimental runs. "*" indicates statistical significance with p 0.01.
Method
H@5
H@ 10
N@5
N@ 10
BIGRee
0.0725
0.0902
0.0595
0.0653
+LatentR3
0.0929*
0.1131
0.0748
0.0813*
p-value
0.00014
0.00067
4.8c-6
1.7e-5
Table 8: Performance comparison of BIGRec and LatentR on the CDs dataset using larger LLMs with LoRA tuning.
Method
H@5
H@ 10
N@S
@@@
Impr.
BIGRec
0.0503
0.0658
0.0389
0.0439
+LatentR
0.0695
0.0903
0.0566
0.0634
40.7%
27.5%). This indicates that while BIGRec's gains over SASRec are similar across item popularity levels, LatentR benefits much more on long-tail items.
Besides, we also explored the performance of our method on the fully cold-start items, with the results shown Table 10. As the results show, our method also has better cold-start performance than the BIGRec bascline.
I MORE ABLATION RESULTS
Our RL designs include mainly three parts: 1) batch-level advantage, 2)the sampling change, and 3) the PPL-based rewards. The batch-level design aims to improve performance, while the PPL-based rewards aim to enhance efficiency. The change in sampling arises from the fact that can no longer follow the sampling procedure used in the GRPO paper. Reparameterizzttion-on based sampling is straightforward choice for handling latent reasoning. Even when implementing the original GRPO under latent reasoning, we still need to adopt our sampling method. Here, we additionally verify the functions of different designs, reporting the time cost. The results are shown in Table As shown, the performance improvement is mainly attributed to the batch-level advantage, and this batch-level advantage does not contribute to efficiency improvements. Please note that, terms of time efficiency, method is more efficient - it takes only about one quarter of the runtime of the original GRPO (under the changed sampling). as reported in Figure 4 of our paper.
J ABLATION STUDY ON REASONING TOKENS
To isolate and demonstrate that the observed gain is primarily due to the learned reasoning captured by the latent tokens rather than merely enhanced utilization of the LLM's semantic information, we conduct specific ablation study. We mask the reasoning tokens generated by the latent reasoning module during inference (denoted as "+ mask token"), effectively removing the model's capacity to perform reasoning while retaining access to the LLM's semantic item representations. The results in Table 12 show that masking the reasoning tokens leads to substantial performance drop, confirming the importance of the reasoning component.
K INFLUENCE OF REASONING LENGTH
We investigate how length of latent reasoning affects model perfomance by varying the number of generated latent tokens (K), with E (0, 2). When implementing, a model dedicated to fully trained. We directly perform reinforcement learning to train the reasoning tokens model based on this. Noise sampling was selectively applied only to the last reasoning token, given that the first token's generative capabilities were already robustly
single reasoning token generation
17

---

Published as a conference paper at ICLR 2026
0.20
BIGRec
0.20
+23.75%1
+13.52%1
H@10
0.15
H@10
0.15
0.10
+26.10%
0.10
+27.33%1
0.05
0.05
0.00
0.00
Popular
Unpopular
Popular
Unpopular
(a) Toys
(b) CDs
+3.20%
0.20
0.20
0.15
+19.12%1
0.15
H@10
H@10
0.10
0.10
+34.15%
0.05
0.05
+30.36%
0.00
0.00
Popular
Unpopular
Popular
Unpopular
(c) Games
(d) Instruments
0.16
BIGRec
0.16
Ours
+20.96%1
N@10
0.12
+12.15%1
N@10
0.12
0.08
0.08
+29.64%
+28.66% 1
0.04
0.04
0.00
0.00
Popular
Unpopular
Popular
Unpopular
(e) Toys
CDs
+5.55%
0.16
0.16
0.12
0.12
N@10
N@10
+18.44%7
0.08
0.08
0.04
+33.95%
0.04
+41.87%
0.00
0.00
Popular
Unpopular
Popular
Unpopular
(g) Games
(h) Instruments
Figure 6: Performance improvement of 3 over BIGRec on both popular and unpopular items on four dataset.
18

---

Published as a conference paper at ICLR 2026
Table 9: Relative performance improvement comparison between popular and unpopular items
Toys
Pupular
RI
Long-tail
RI
SASRec 0.0812
0.0315
BIGRec
0.0923
13.7%
0.0369
17.14% 52.1% %
LatentRas
0.1035
27.5%
0.0479
Table 10: Performance on the fully cold-start items.
Dataset
Toys
CDs
BIGRec
LatentR
0.0029
0.0263
established through the initial training. Experiments are conducted on the Toys and CDs datasets, and the results in terms of NDCG@ 10 (denoted N@ 10), HR @ 10 (H@ 10), NDCG@5 (N@5) and @R@5 (H@5) are shown in Figure 7. As shown, increasing the reasoning length improves performance, demonstrating the potential to achieve even better results by increasing the reasoning length. However, the gain from K=1 to K== is much smaller than from K=0 to K=1, suggesting that few latent tokens may be sufficient to capture most of the reasoning information.
L COMPARISON WITH THE ORIGINAL GRPO
To implement the variant with the original GRPO, after sampling the latent reasoning, we leverage the LLM to generate the final answer, and then exactly match the answer with the ground-truti to compute 0-1 reward. Lastly we leverage the group average for advantage computation. The experiments are conducted on both the Toys and CDs datasets. The results are summarized in Figure 8. In terms of performance, our method achieves results comparable to the variant using original outperforming
slighlyy the CDs dataset while performing slightly worse the Toys dataset. In terms of training efficiency, our method significantly faster, reducing the training cost to approximately 1/4 of that of the original GRPO-based method. These findings validate the rationale and effectiveness of our proposed modifications. Notably, the reported results for the original GRPO are based on full-model tuning during RL, this setting is necessary achieve the reported performance. Tuning only the LatentRATT layer, as done in the default LatentR resultts in significantly worse outcomes for GRPO. However, we observe that limiting GRPO tuning the LatentR layer would only slightly reduce training cost (by approximately 50 minutes), indicating that our method remains substantially more efficient.
M APPLICABILITY OF OUR METHOD TO OTHER MODELS
In this section, we have explored two broader applications of methods: 1) applying traditional ID-based recommendation, and 2) applying to the method that leverages LLM-generated embeddings enhance the recommendation model (AlphaRec).
We applied our method to SASRec, and the results are reported in Table 13. As shown, SASRec does not exhibit meaningful gains after incorporating our method. These results align with the findings from ReaRec's Tang et al. (2025) ablation studies applying L.MMs' latent reasoning into traditional methods without specifically solving problems like reasoning degradation does not lead to effective improvements. However, our LatentR3 could bring improvements over the vanilla latent reasoning methods.
Applying to SASRec:
Applying to Enhance LLM Representations: To verify whether latent reasoning can lead to better LLM representations, we conducted additional experiments on AlphaRec, replacing the standard embeddings with those generated by the our latent reasoning model to enhance the ID-based model. The results presented in Table 14 demonstrate that the latent reasoning approach also exhibits considerable value in this scenario.
19

---

Published as a conference paper at ICLR 2026
0.080
0.100
Toys
Toys
0.075
0.095
CDs
CDs
0.070
0.090
N@5
0.065
H@S
0.085
0.060
0.080
0.055
0.075
0.050
0.070
0.045
0.065
Reasoning Length
Reasoning Length
0.090
0.125
Toys
Toys
0.085
CDs
0.120
0.080
0,115
N@10
0.075
H@10
0.110
0.070
0.105
0.065
0.100
0.060
0.095
0.055
0.090
Reasoning Length
Reasoning Length
Figure 7: Impact Reasoning Length on LatentR Performance
0.14
0.14
Durs
GAPO
GRPO
GAPO
0.12
Ours
0.12
Ours
300
0.10
0.10
(minutes]
240
Matric Value
0.08
0.08
180
0.06
0.06
0.04
0.04
0.02
M22
N62
N@10
0.02
H105
N:5
Ours
GR
(6) Performance on Toys
(6) Performance CDs
(c) Training Time Cost
Figure 8: Comparison the original GRPO regarding Performance (Left) and efficiency (Right).
20

---

Published as a conference paper at ICLR 2026
Table 11: Detailed comparison of different designs
Ablations
H@ 10
Train time
+sampling+ rewards (i.e., w/o Batch Advantage)
0012
76 mins
+sampling + PPL rewards+ batch-level advantage (i.e., LatentR3)
0.1160
81 mins
Table 12: Ablation study on reasoning tokens
H@5
H@ 10
N@S
N@ 10
BIGRec
0,0616
0.0672
0.0757
0.0929
LatentR
0.0754
0.0826
0.0934
0.1160
+ mask token
0.0644
0.0707
0.0833
0.1031
N FULL RELATED WORK
The recent widespread success of LLMs (Zhao et al., 2026; Team, 2024; Zhang et al., 2023) has sparked growing interest in their application recommendation systems, giving rise to three main paradigms: (1) in-context learning (Gao et al., 2023; Sun et al., 2024; Wang al., 2021), (2) agent-based frameworks (Wang et al., 2023; Zhang al., 2024a;b; Zhao et al., 2025), and (3) fine-tuning-a based methods (Bao et al., 2025; Zhang et al., 2024c; Lin et al., 2025b; Gao al., 2025). Among these, the fine-tuning-baat based solution has received the most attention due to its ability to more effectively align LLMs with recommendation objectives, and our work falls into this category, Although significant efforts have been devoted to this direction, most existing methods overlook the role of reasoning in recommendation particularry latent reasoning, which remains unexplored. Among the limited studies that investigate reasoning, existing works primarily focus on enhancing explicit chain-offthe of-thhuuttt (CoT) reasoning through fine-tuning. RecSAVER (Tsai et al., 2024) and ReasoningRec (Bismay et al., 2025) leverage larger LLMs to generate CoT reasoning data for training smaller LLMs, aiming to improve their reasoning capabilities. Reasoning4Rec (Fang et al., 2025) decomposes the reasoning process into multiple steps, using user reviews as proxy supervision. Exp3rt (Kim al.) focuses on distilling the reasoning behavior of larger LLMs into smaller models. However, these approaches rely heavily on CoT data, which is costly to obtain and often difficult ensure in quality. Moreover, the of explicit CoT reasoning typically incurs higher inference latency. In contrast, our work introduces latent reasoning for LLMMaaed recommendation. which eliminates the need for CoT supervision and enables more efficient inference. Rec-R1 Lin et al. (2025a) investigated the use of RI. to enhance L..--baeed recommendation; however, it focuses on enhancing query rewriting and summarization of L.LMs rather than improving general reasoning capabilities. As for latent reasoning, only two concurrent works (Tang al., 2025; Zhang et al., 2025) have explored it, but neither focuses on LLM--basd recommendation, and our approach to latent reasoning is fundamentally different and specifically focused LLM-basee recommendation. ReaRec Tang et al. (2025) does not focus on reinforcement learning to support better exploration of reasoning. STREAM-Res focuses more on building a recommendation foundation model with reasoning abilities from scratch. While STREAM-Rec Zhang et al. (2025) uses RL, it still relies on pseudo labels train slow-thinking abilities, and its RL stage largely follows the original GRPO design, except that its reward computation incorporates recommendation-speiint elements. Our sampling and advantage computation are different.
LLM-based Recommendation.
Table 13: The results of replacing LLMs with SASRee for LatentR
Method
H@5
H@ 10
N@5
N@ 10
vanilla SASRec
0.0841
0.1054
0.0622
0.0691
SASRec+latent reasoning
0.0681
0.0880
0,0506
0.0570
SASRec+latent reasoning+RL. (LatentR*)
0.0801
0.0975
0.0635
0.0691
Ours
0.1137
0.1327
0.0915
0.0977
21

---

Published as a conference paper at ICLR 2026
Table 14: The results of applying LatentR to enhance AlphaRec.
Datasets
Cds
Toys
Metries
N@5
N@ 10
H@5
H @@ 10
N@5
N@ 10
H@5
H@ 10
AlphaRec
0.0278
0.0373
0.0479
0.0774
0.0347
0.0448
0.0579
0.0893
AlphaRec-latent
0.0373
0.0482
0.0629
0.0963
0.0352
0.0465
0.0577
0.0932
Latent reasoning in LLM. Latent reasoning has been proposed to address two major limitations of explicit CoT reasoning: (1) high inference latency and (2) the excessive generation of non-essential tokens. Several efforts have been made to explore latent reasoning mechanisms. For example, Deng et al. (2023) introduced the implicit CoT by encoding reasoning directly into the model's internal hidden states, while Hao et al. (2024) proposed treating these hidden states as thoughts in the input space to represent reasoning. However, both methods rely supervision from explicit CoT data. Goyal et al. (2024) proposed using learnable <pause> tokens to represent reasoning steps, but this approach may suffer from low expressivity (Hao al., 2024). Among the existing works, the method proposed in (Geiping et al., 2025) is most related to ours. It introduces a recurrent architecture for generating deep latent reasoning, but it is not designed using reinforcement learning and requires pertaining a LLM model with new architecture, making it incompatible with direct integration into existing LLMs.
O THE USE OF LARGE LANGUAGE MODELS
The use of Large Language Models (LLMs) an integral part of our methodology. employ LLMs primarily to assist in the refinement of textual content, including the optimization of language and clarity in the writing this paper. A detailed description of how the LLM was utilized within our methodological framework is provided in Section 3. It is important clarify that while LLMs were used as tools to support drafting and editing, all research ideas, conceptual design, data analysis, and final decision decision-making making conducted entirely by the human authors.
22


Reviews:
[{"review_id": "6QaDVVRGnt", "reviewer": "Reviewer_SRNz", "summary": "This paper introduces an SFT-then-RL paradigm to enable latent reasoning in LLM-based recommendation. The main contributions are:\n1. An additional attention layer, LatentRATT, that produces latent vectors and improves performance.\n2. An improved reward design that computes the advantage by averaging across the mini-batch rather than across multiple rollouts from the same prompt.\n\nTwo further reward modifications are proposed, though the experiments do not fully convince me of their effectiveness. Experiments are conducted on four public datasets. Code is available during review.", "questions": "Please first refer to the \"Weaknesses\". Two other questions are:\n\n1. Equation (8): Why does the KL divergence become zero? Isn't LatentRATT a part of the policy network $\\pi_{\\theta}$?\n2. Why does scaling the base model from 1.5B to 3B result in much worse performance, as suggested by the cross-comparison between Table 1 and Table 7?", "limitations": "", "rating": 4, "confidence": 4, "soundness": 2, "presentation": 4, "contribution": 3, "strengths": "1. Timely exploration of latent reasoning for recommendation.\n2. The LatentRATT layer appears effective for generating latent vectors that improve performance.\n3. The advantage computation using batch-level averaging is a clear and reasonable change to GRPO.\n4. Extensive experiments on four public datasets.\n5. Code is available during the review period.", "weaknesses": "1. Why are LLMs necessary here?\n    * The authors state that prior latent-reasoning-for-recommendation works are not LLM-based and that their approach is tailored to LLMs.\n    * However, the core techniques, namely LatentRATT and the modified GRPO algorithm, are not inherently tied to language modeling. In principle they could be applied to conventional recommenders such as SASRec. The \"reasoning\" is encoded in a latent vector of length 1, not in explicit linguistic reasoning.\n    * To support the claim that the approach is specifically tailored to LLMs, further discussions and an ablation replacing the LLM backbone with a standard recommender would be important.\n2. Limited verification of the GRPO-style modifications.\n    * My understanding is that batch-level advantage aims to improve performance, while the sampling change and the PPL-based rewards target efficiency. For the two modifications aimed at efficiency, the paper reports only an overall comparison against vanilla GRPO, without isolating the contribution of each change.\n    * If sampling and PPL rewards also affect recommendation performance, not only on efficiency, there should be ablations on ranking metrics. If they primarily affect efficiency, there should be ablations on cost and latency. Neither is shown.\n3. Insufficient discussion of concurrent latent-reasoning work. The paper briefly mentions two concurrent papers on latent reasoning for recommendation, but does not clearly compare similarities and differences. A more systematic discussion would help clarify novelty, especially given the question of whether LLMs are needed.\n4. Data processing choices may bias results.\n    * The datasets are not large, and the authors further subsample to about 5k items. This setting resembles a sparse, cold-start-like scenario that may not reflect production traffic and may favor LLM-based methods relative to conventional baselines, weakening the overall contribution.\n    * The paper claims to follow established processing methodology but does not cite explicit references.\n5. Metric inconsistency in the main text. Figure 2 reports H@10 and N@10, while Figure 3 reports H@5 and N@5. Although full results appear in the appendix, the inconsistency in the main text can feel like cherry-picking.\n6. Related work on latent reasoning in LLMs is thin. Only three papers are cited. A more comprehensive and organized survey of latent reasoning for LLMs would be better.\n7. Typos and formatting.\n    * Line 388 appears to have an unintended newline.\n    * Line 682 has a missing section number (\"Appendix ??\").\n    * Line 689 uses \\citet{} where \\citep{} seems intended.", "quality": null, "clarity": null, "significance": null, "originality": null, "strengths_and_weaknesses": "", "was_revised": false, "final_justification": "", "rebuttal": "", "claims_and_evidence": "", "methods_and_evaluation_criteria": "", "theoretical_claims": "", "experimental_designs_or_analyses": "", "relation_to_broader_scientific_literature": "", "essential_references_not_discussed": "", "other_strengths_and_weaknesses": "", "other_comments_or_suggestions": "", "questions_for_authors": "", "summary_of_paper": "", "summary_of_recommendation": "", "technical_quality": "", "clarity_of_presentation": "", "potential_impact": "", "robotics_focus": "", "quality_of_limitations": "", "questions_for_rebuttal": "", "reasons_to_accept": "", "reasons_to_reject": "", "questions_to_authors": "", "extra_scores": {}}, {"review_id": "U8jMeOQYwU", "reviewer": "Reviewer_NXRr", "summary": "This paper introduces a new framework for applying reasoning capabilities of Large Language Models (LLMs) to recommendation systems. Instead of relying on explicit chain-of-thought (CoT) reasoning — which requires costly CoT data and causes high inference latency — the authors propose a latent reasoning paradigm.\n\nLatentR³ enables the model to reason within a compact latent space rather than generating textual reasoning traces. The framework integrates a new architectural module, LatentRATT, which adds an attention layer on top of the LLM’s decoding layer to produce latent reasoning tokens aligned with the input embedding space.", "questions": "See the weaknesses.", "limitations": "", "rating": 4, "confidence": 5, "soundness": 3, "presentation": 2, "contribution": 3, "strengths": "The paper makes a wise and well-justified design choice. For the sequential recommendation problem, latent reasoning is indeed a more suitable approach. Rather than performing explicit chain-of-thought reasoning, which assumes some human-like logical process, the task here is essentially about learning an approximator that fits the pattern of the next purchased (or interacted) item based on historical data.\n\nIn fact, most sequential recommendation problems do not lend themselves to explicit CoT reasoning, because there is rarely a clear, interpretable logic that connects a user’s past behaviors to their next purchase. It is challenging to logically deduce what users will buy next just from previous purchase records. This intuition is also reflected in the results, i.e.,  the numbers in the experimental tables are generally low.", "weaknesses": "1. In the experiments, the authors use Qwen2.5-1.5B as the base LLM and keep it frozen during training, only updating the LatentRATT module. This raises several concerns.\nFirst, given that Qwen2.5-1.5B is a relatively small model and easy to fine-tune, it would be reasonable to jointly train the entire model rather than freezing the backbone. Such joint optimization might lead to better results.\nMoreover, an additional baseline should be included, a fully fine-tuned Qwen2.5-1.5B model trained with standard supervised fine-tuning (SFT) without CoT reasoning. As discussed in the strengths, sequential recommendation essentially involves learning an approximator from historical behavior to future patterns, so a fully fine-tuned LLM without CoT might achieve similar effectiveness. Input is the same as yours, and output groundtruth is the item. \n\n2. According to Table 3, the datasets used in the experiments contain relatively small item pool size. In real-world recommendation systems, the number of items is usually much larger. It remains unclear how well the proposed method would perform on large-scale datasets with hundreds of thousands or millions of items. The scalability and generalization ability in such realistic settings are therefore uncertain.\n\n3. The paper does not discuss how the model handles cold-start scenarios, such as new or unseen items entering the system. Since this is a crucial challenge in recommendation tasks, it would strengthen the paper to provide either a discussion or an experiment addressing it.\n\n4. The Related Work section overlooks several recent papers, such as Rec-R1, which focuses on explicit CoT reasoning for recommendation. The authors should revisit this section and ensure that all relevant recent studies are properly cited and discussed.\n\n> Lin, J., Wang, T., & Qian, K. (2025). Rec-R1: Bridging Generative Large Language Models and User-Centric Recommendation Systems via Reinforcement Learning. Transactions on Machine Learning Research. https://openreview.net/forum?id=YBRU9MV2vE\n\n5. The relative improvement percentages in Figure 2 may not be a fair representation. For unpopular items where the original performance values are already small, even minor absolute gains can appear as large relative improvements. Figure 6 actually shows that the absolute improvements are nearly the same across categories, so using relative percentages can be misleading. It would be better to present both absolute and relative results for a fairer comparison.\n\n6. In the ablation study section, for the variant “w/o LatentRATT”, the paper does not clearly specify the training configuration. It remains ambiguous whether the entire LLM (Qwen2.5-1.5B) is frozen or partially updated during training. Since LatentRATT is removed, clarification is needed about which parameters are optimized in this setting.\n\n7. Inaccurate or vague expressions\n* Line 72 (“training RL from scratch”). This phrase is vague. The authors’ intended meaning appears to be “RL without SFT warm-up”, but the current wording could be misread as training the LLM from random initialization using RL. A clearer expression like “RL-only” would avoid this ambiguity.\n* Line 79 (“GRPO corresponds to binary reward”) — The statement is not entirely accurate. In general, policy gradient methods can operate on arbitrary scalar rewards. The current phrasing incorrectly suggests GRPO is inherently binary by definition.\n* Line 682 (“as shown in Appendix ???”) — There is an apparent LaTeX reference error (a missing \\ref target), which should be corrected for completeness and clarity.", "quality": null, "clarity": null, "significance": null, "originality": null, "strengths_and_weaknesses": "", "was_revised": false, "final_justification": "", "rebuttal": "", "claims_and_evidence": "", "methods_and_evaluation_criteria": "", "theoretical_claims": "", "experimental_designs_or_analyses": "", "relation_to_broader_scientific_literature": "", "essential_references_not_discussed": "", "other_strengths_and_weaknesses": "", "other_comments_or_suggestions": "", "questions_for_authors": "", "summary_of_paper": "", "summary_of_recommendation": "", "technical_quality": "", "clarity_of_presentation": "", "potential_impact": "", "robotics_focus": "", "quality_of_limitations": "", "questions_for_rebuttal": "", "reasons_to_accept": "", "reasons_to_reject": "", "questions_to_authors": "", "extra_scores": {}}, {"review_id": "DVNUWecIg0", "reviewer": "Reviewer_UkVV", "summary": "This paper introduces Reinforced Latent Reasoning for Recommendation ($\\text{LatentR}^3$), an end-to-end framework that enables Large Language Models (LLMs) to perform implicit reasoning for recommendation. The core idea is to replace costly, explicit Chain-of-Thought (CoT) generation with compact latent tokens during inference, thus significantly boosting efficiency and removing the dependency on explicit CoT supervision data. $\\text{LatentR}^3$ employs a novel two-stage training scheme that leverages Supervised Fine-Tuning (SFT) followed by Reinforcement Learning (RL) using a modified GRPO algorithm (LR-GRPO). The results show that $\\text{LatentR}^3$ achieves state-of-the-art performance on various Amazon datasets while maintaining low inference latency.", "questions": "1. The paper states that performance improvements are mainly derived from better recommendations for long-tail items. Since the LLM's rich semantic representations already contribute to better long-tail performance in many methods, how can the authors isolate and demonstrate that the observed gain is primarily due to the learned reasoning captured by the latent tokens, rather than simply an enhanced utilization of the existing semantic information?\n\n2. In the recommendation scenario, how does the performance of implicit reasoning (LatentR³) directly compare to the performance of explicit CoT? If there is a performance gap, what is its magnitude? Understanding this gap is crucial for determining whether implicit reasoning is merely a faster, but less accurate, alternative.\n\n3. The paper utilizes negative Perplexity (PPL) as a continuous reward. What results would be achieved if the model were trained using a simpler binary reward (direct ranking reward or a binary reward signal) or another form of reward, and how would this impact the training stability and final recommendation performance?\n\n4. The compared methods are all purely based on LLM representation and are not combined with traditional ID-based recommendation. Can this approach truly outperform methods where LLM representations are used as input features for traditional recommenders? In this context, can implicit reasoning lead to better LLM representations? \n\n6. Furthermore, is this implicit reasoning scheme applicable to non-textual input, Item Indexing-based recommendation methods, such as 'Adapting Large Language Models by Integrating Collaborative Semantics for Recommendation'?", "limitations": "", "rating": 6, "confidence": 4, "soundness": 2, "presentation": 3, "contribution": 3, "strengths": "1. The framework successfully addresses a major practical limitation of LLM-based recommenders by eliminating the generation of verbose explicit CoT text. By compressing the reasoning into a few latent tokens, it achieves high performance while maintaining efficiency, which is crucial for real-time deployment.\n\n2. $\\text{LatentR}^3$ utilizes a reinforcement learning approach to optimize the latent reasoning process, which allows the model to learn effective reasoning strategies directly from the recommendation outcome without the need for expensive, subjective, and difficult-to-obtain explicit CoT supervision data.", "weaknesses": "1. The experimental validation is restricted in scope. Firstly, it only uses a specific family of datasets (Amazon review data), lacking tests on other popular and structurally different public benchmarks like MovieLens-1M. Secondly, the framework is only implemented and tested on relatively small-scale LLM backbones (e.g., $D^3$ or BIGRec, likely based on BERT or similar models), leaving its scalability and continued effectiveness on large, cutting-edge foundation models (e.g., Llama-7B/13B) unproven.\n\n2. While the LR-GRPO method is technically described, the rationale behind critical design choices, such as why the negative PPL is used as a continuous reward proxy and how the batch-level advantage specifically resolves stability issues in the continuous policy space, could be explained more intuitively for a general audience.", "quality": null, "clarity": null, "significance": null, "originality": null, "strengths_and_weaknesses": "", "was_revised": false, "final_justification": "", "rebuttal": "", "claims_and_evidence": "", "methods_and_evaluation_criteria": "", "theoretical_claims": "", "experimental_designs_or_analyses": "", "relation_to_broader_scientific_literature": "", "essential_references_not_discussed": "", "other_strengths_and_weaknesses": "", "other_comments_or_suggestions": "", "questions_for_authors": "", "summary_of_paper": "", "summary_of_recommendation": "", "technical_quality": "", "clarity_of_presentation": "", "potential_impact": "", "robotics_focus": "", "quality_of_limitations": "", "questions_for_rebuttal": "", "reasons_to_accept": "", "reasons_to_reject": "", "questions_to_authors": "", "extra_scores": {}}]

Author rebuttal:

Decision: Accept (Poster)