arXiv:2510.18999v1 Announce Type: cross Abstract: Estimation of signed distance functions (SDFs) from point cloud data has been shown to benefit many robot autonomy capabilities, including localization, mapping, motion planning, and control. Methods that support online and large-scale SDF reconstruction tend to rely on discrete volumetric data structures, which affect the continuity and differentiability of the SDF estimates. Recently, using implicit features, neural network methods have demonstrated high-fidelity and differentiable SDF reconstruction but they tend to be less efficient, can experience catastrophic forgetting and memory limitations in large environments, and are often restricted to truncated SDFs. This work proposes $\nabla$-SDF, a hybrid method that combines an explicit prior obtained from gradient-augmented octree interpolation with an implicit neural residual. Our method achieves non-truncated (Euclidean) SDF reconstruction with computational and memory efficiency comparable to volumetric methods and differentiability and accuracy comparable to neural network methods. Extensive experiments demonstrate that \methodname{} outperforms the state of the art in terms of accuracy and efficiency, providing a scalable solution for downstream tasks in robotics and computer vision.