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The phrase "are losing out" is correct and usable in written English.
It can be used to indicate that someone is missing an opportunity or advantage.
Example: "If you don't invest in your education, you are losing out on valuable career opportunities."
Alternatives: "are missing out" or "are at a disadvantage."
Dictionary
are losing out
verb
To cause (something) to cease to be in one's possession or capability due to unfortunate or unknown circumstances, events or reasons.
synonyms
Exact(59)
We are losing out".
The kids are losing out," she said.
Customers are losing out," Tyrie said.
People are losing out on both ends".
Many big companies are losing out to smaller ones.
Dedicated e-reading devices are losing out to general-purpose tablets.
You are losing out on normal life, on having friendships with people, routines.
Networks that try to please everybody are losing out to those that target particular groups.
But cheap-and-cheerful local makers are losing out to drivers' affection for better foreign brands.
And across Europe, egalitarian universities are losing out to their more elitist American rivals.
"But real people are losing out in real ways when they enact the drama".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com