LLM-based coding agents solve software-engineering tasks through iterative interactions with development environments, where returned observations accumulate in the context and become a major source of inference cost. Observation compression reduces this cost by shortening observations before they are appended to the context. However, existing methods still exhibit an unsatisfactory efficiency-effectiveness trade-off, as they do not explicitly model how compression affects the agent's subsequent behavior. This paper proposes CoACT, an action-preserving observation compression method for coding agents. CoACT is built on next-action preservation (NAP), which requires a compressed observation to induce the same next action as the raw observation. By checking the agent's immediate next action, NAP provides a practical signal for whether a compression preserves the information needed for continued task solving. During training, a teacher model first generates multiple compressed candidates of each observation. CoACT then uses an action-preservation reward based on NAP to filter out candidates that would change the agent's next action, and uses a length-reduction reward to choose compact candidates as supervision for a lightweight compressor. Experiments on SWE-bench Verified with three agentic models show that CoACT reduces average total token consumption by 33.0% while maintaining task-solving effectiveness close to the uncompressed agent.
Web agents operating over long horizons ingest raw DOM and accessibility trees -- routinely tens of thousands of tokens -- at every action step, causing progressive context degradation that erodes reasoning well before tasks complete. We argue that this coupling of observation frequency to action frequency is an architectural mistake. Drawing on the insight from Recursive Language Models that querying a document outperforms reading it wholesale, we propose Signal-Driven Observation (SDO): a dedicated sub-call reads the full DOM but returns only task-relevant elements and their selectors, and is re-invoked only when a lightweight signal detector fires -- triggered by URL transitions, newly visible interactive elements, action failures, or exogenous browser events. We outline the open problems SDO introduces and call on the community to treat observation compression as a core architectural decision in web agent design.