arXiv:2610.32572v1 Announce Type: cross Abstract: Adapting ASR to a domain with only untranscribed audio typically relies on pseudo-labeling, a strong teacher transcribes the audio and a student is fine-tuned on it. Because supervised fine-tuning (SFT) treats every pseudo-label token as a target, the student inherits the teacher's errors. We show that using the same pseudo-labels as a reward reference for Group Relative Policy Optimization (GRPO) is more robust to label noise. In the banking domain, GRPO yields 29.3% to 56.2% relative WER improvements over SFT on Whisper-generated labels, and the advantage holds across four Whisper sizes, four teacher families, three domains and four languages. While SFT reproduces almost 100% of teacher errors verbatim, GRPO passes through only 27%. Rollout statistics explain why, erroneous pseudo-label words rarely appear in on-policy rollouts, so group-relative advantages stay aligned with the clean transcript, whereas SFT forces them into the policy's support and collapses the reward variance GRPO relies on.