Head coach Richard Cockerill says Edinburgh "are not quite ready" to compete for trophies after the European Challenge Cup defeat by Bordeaux.
The visitors made an horrendous start, falling 14-0 down inside 10 minutes.
They stayed in the fight and Damien Hoyland's try gave them a sniff of victory, but ultimately the French side came out 23-14 winners.
"We just weren't quite good enough," Cockerill told BBC Scotland after the quarter-final in France.
"You're never happy to lose but there is some satisfaction with how we got ourselves back in the game and had an opportunity to win it, but on the day we weren't quite good enough to do that.
"I hope in 12-24 months' time we're talking about winning these games and trying to win some silverware."
It's a second knockout defeat in three weeks for Cockerill's side after a late collapse against Ulster cost them a maiden Pro14 final appearance.
"Ulster we should have won because we were good enough to win that game," Cockerill said.
"Today they were probably better than us. They're a better team than us, bigger budget, massive squad both physically and numbers wise. Disappointing because we could have, should have done better.
"Maybe we're not as good a team, or not quite ready to step into those semi-finals and finals because clearly on a couple of occasions in the last three weeks we've not been able to do that. We just have to keep getting better."