It’s lossless but it’s not on par with Qobuz or Tidal and as highlighted by others it’s challenging and takes some ingenuity to get the source to your HiFi gear in a lossless format. It’s only lossless with the source, your phone or I-Phone connected directly, hard wired, not over AirPlay. I got excited when they announced lossless as they have a large catalog of music that rivals any service and it keeps you in the Apple Ecosystem if you have Apple products, but it’s extremely limiting when trying to implement Apple Music in your HiFi rig and it won’t quite match the top services or Amazon Music for that matter. Their ALAC still compresses the file, unlike a FLAC file that streams in its native format.