Nowhere does it say they are lost. Hebrews 10 makes it clear what kind of spiritual condition the lost are in.
Hebrews 10 makes it clear that faith in Christ and not the Law saves a person.
"It is impossible for the blood of bulls and goats to take away sins. Therefore, when Christ came into the world, he said: “Sacrifice and offering you did not desire, but a body you prepared for me; with burnt offerings and sin offerings you were not pleased. Then I said, ‘Here I am—it is written about me in the scroll— I have come to do your will, my God.’ First he said, “Sacrifices and offerings, burnt offerings and sin offerings you did not desire, nor were you pleased with them”—THOUGH THEY WERE OFFERED ACCORDING TO THE LAW. Then he said, “Here I am, I have come to do your will.” He sets aside the first to establish the second. And by that will, we have been made holy through the sacrifice of the body of Jesus Christ once for all."- Hebrews 10:4-10