arXiv:2611.09807v1 Announce Type: new Abstract: A conversational agent that remembers has to decide what to keep. Retrieval-augmented generation keeps the transcript and searches it; the alternative is to compact each turn into atomic facts and search those. We compare the two on LoCoMo, with both arms answering all 1,985 questions in one window, against the same stores, with the same generator and judge, and both predictions on one row, which licenses McNemar's exact test on the 512 questions where they disagree. On the four categories comparable work reports, compaction scores 71.4 per cent against 64.6, a lead of 6.8 points (p = 5.5e-08) at 34 per cent fewer prompt tokens. On all five, including the adversarial set comparable work drops, the lead falls to 2.0 and stops being significant, because the baseline leads adversarial by 14.6. That loss has a structure. Our lead falls as the reference answer demands more source wording, 9.6 points ahead at one or two reference words and 3.1 behind past eight, with token overlap moving the same way, so the judge is not the cause. Compaction keeps what a fact asserts and discards how it was said, so it wins where the answer is a value and loses where it is a phrasing. We also report four negative results with their power calculations.