Mobile agents are increasingly expected to operate everyday applications from screenshots and language goals, where reliable control requires reasoning over screen affordances, multi-step navigation, and future state changes. However, many agents externalize this computation as long textual chains of thought, which slows interaction, increases supervision cost, and complicates deployment. We introduce MIRAGE, a framework that learns continuous latent reasoning representations from visible textual reasoning traces. MIRAGE transfers explicit reasoning into compact hidden states, enabling the agent to reason internally without decoding long rationales. It also incorporates a generative world-model objective: latent reasoning vectors are aligned with future screenshots, encouraging the agent to anticipate upcoming interface states before acting. This turns hidden computation into both a compressed thought representation and a forward-looking model of environment dynamics. At inference time, MIRAGE reasons in continuous latent space, reducing token generation while improving execution efficiency. On AndroidWorld, MIRAGE matches explicit chain-of-thought supervised fine-tuning in the 4B ablation with a 3-5x lower decoded-token budget and improves a comparable instruction-tuned baseline by 10.2 points; on AndroidControl, it improves action grounding while generating over 75% fewer tokens.
Large reasoning models improve performance by generating extended chain-of-thought (CoT) reasoning, but this behavior becomes inefficient when applied to LLM agents. Current LLM agents often generate verbose textual reasoning at every decision step and allocate reasoning effort nearly uniformly across turns, leading to substantial inefficiency in multi-turn agentic trajectories. We propose Adaptive Latent Agentic Reasoning (ALAR), a dual-mode framework that uses compact latent reasoning for routine turns and selectively escalates to explicit chain-of-thought when deeper deliberation is needed. ALAR learns latent reasoning by using the agent's actions as supervision anchors and is further optimized to use latent reasoning when it is sufficient for task success and reserve explicit CoT for harder decisions. Experiments on agentic search and tool-use benchmarks show that ALAR maintains comparable or better task accuracy while substantially reducing generated tokens by up to 43.6% in search and 84.6% in tool use. These results demonstrate that ALAR improves the accuracy-efficiency trade-off of LLM agents by reducing unnecessary textual reasoning while preserving explicit deliberation for harder decision steps.