1
: involving or causing some loss of data
Lossy compression is a way of getting even smaller squeezed files than lossless. This technology strips out data it has been programmed to regard as either unnecessary or redundant.—Ron Goldberg
The loss was literal: MP3 is what's called a "lossy" data-compression form of audio encoding; some audio information is demonstrably lost in the process.—Virginia Heffernan
2
: causing attenuation or dissipation of electrical energy
a lossy transmission line
a lossy dielectric
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Merriam-Webster unabridged
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