They are not out, but things get trickier for them.

Quick Scoop: What happens if Real Madrid lose?

For the current 2025–26 Champions League format, the league phase sends the top 24 teams into the knockout phase.

  • Teams in places 1–8 go straight to the round of 16.
  • Teams in places 9–24 go into a knockout play‑off over two legs.

Real Madrid’s recent 4–2 loss to Benfica dropped them down to 9th place in the league table, which means:

  • They did not get the automatic last‑16 spot.
  • They now have to play a two‑legged play‑off tie in February to stay in the Champions League and reach the round of 16.

So, to your core question “if Real Madrid lose are they out?” in the context of this season’s league phase:

A loss like the one vs Benfica does not knock them out immediately, but it can drop them into the play‑off zone instead of the automatic last 16.

If they then lose the play‑off tie , that is when they’d actually be out of the competition.

Mini recap (forum-style)

  • Losing in the league phase :
    • Can drop their position, change whether they go straight to last 16 or have to play extra games, but doesn’t auto‑eliminate them.
  • Losing in the knockout play‑off :
    • Over two legs, if they lose on aggregate, they are out of the Champions League.

So they’re still alive, but they’ve made their path longer and more stressful.

TL;DR:
No, one league‑phase loss doesn’t mean Real Madrid are out; it just affects whether they go straight to the last 16 or have to survive an extra knockout play‑off first.

Information gathered from public forums or data available on the internet and portrayed here.