Concept: each bounce keeps only a fraction e² of the height, because some energy turns to heat and sound.
The coefficient of restitution e. When the ball hits the floor it rebounds a little slower: the outgoing speed is e times the incoming speed (0 < e < 1). A perfect superball has e near 0.9; a lump of clay has e near 0.
Free-fall links speed and height by v² = 2gh, so height ∝ v². Since each bounce multiplies speed by e, it multiplies height by e². After n bounces the peak height is hₙ = e²ⁿ·h₀ — a geometric decay. The "lost" energy became heat, sound and deformation.
The ball is integrated under gravity (g = 9.81 m/s²); at each floor contact its velocity is reversed and scaled by e. The orange dashes mark each successive peak (e²·previous) and the bar shows the fraction of the original energy still left (e²ⁿ).
Newtonian mechanics; Newton's experimental law of restitution (1687); v² = 2gh.