Lossy hyperspectral image compression has received considerable interest in recent years due to the extremely high dimensionality of the data. However, the impact of lossy compression on spectral unmixing techniques has not been widely studied. These techniques characterize mixed pixels (resulting from insufficient spatial resolution) in terms of a suitable combination of spectrally pure substances (called endmembers) weighted by their estimated fractional abundances. This paper focuses on the impact of JPEG2000-based lossy compression of hyperspectral images on the quality of the endmembers extracted by different algorithms. The three considered algorithms are the orthogonal subspace projection (OSP), which uses only spatial information, and the automatic morphological endmember extraction (AMEE) and spatial spectral endmember extraction (SSEE), which integrate both spatial and spectral information in the search for endmembers. The impact of compression on the resulting abundance estimation based on the endmembers derived by different methods is also substantiated. Experimental results are conducted using a hyperspectral data set collected by NASA Jet Propulsion Laboratory over the Cuprite mining district in Nevada. The experimental results are quantitatively analyzed using reference information available from U.S. Geological Survey, resulting in recommendations to specialists interested in applying endmember extraction and unmixing algorithms to compressed hyperspectral data.