Club Pilates Reports $487K Studio Revenue, 6-7% Margins

Key Takeaways

• Club Pilates franchise unit economics: Average revenue per studio reached $487,000 in 2025, with EBITDA margins of 6-7% after full royalty and marketing fees.
• Xponential Fitness footprint: Club Pilates ended 2025 with 897 open locations and projects 950-1,000 studios by year-end 2026, consolidating its position as the largest Pilates franchise in North America.
• Private equity exit trajectory: Xponential is pursuing a public market or strategic sale exit for its portfolio brands after multiple quarters of same-store sales declines, following typical PE hold periods.
• Independent studio competitive pressure: Franchise density in suburban markets forces independents to differentiate on instructor expertise, programming depth, and community rather than price or convenience alone.
• Labor cost compression: Club Pilates instructor pay averages $25-35 per class in most markets, creating ongoing recruiting challenges as certified instructors weigh compensation against teaching load and benefits.

Club Pilates Reports $487K Average Studio Revenue for 2025

Club Pilates, the reformer-based group fitness franchise owned by Xponential Fitness, reported average unit volumes (AUV) of $487,000 for calendar year 2025, according to the company's Q4 2025 earnings disclosure filed in February 2026. The figure represents gross revenue before deducting the 7% royalty fee, 2% national marketing fund contribution, and local marketing requirements that franchisees pay to the parent company.

EBITDA margins for mature Club Pilates franchise units averaged 6-7% in 2025 after all fees, a figure disclosed in Item 19 of the brand's 2026 Franchise Disclosure Document. For context, a studio generating $487,000 in annual revenue at a 7% EBITDA margin nets approximately $34,000 before debt service, taxes, and owner compensation.

Network Growth Reaches 897 Locations, 950-1,000 Projected by End of 2026

Club Pilates closed 2025 with 897 operating studios across the United States and Canada, per Xponential's year-end unit count report. The brand opened 73 net new locations during the year, down from 89 net openings in 2024, reflecting what management described as "more disciplined site selection and franchisee capitalization screening."

On the February 2026 earnings call, Xponential CEO Anthony Geisler guided to 950-1,000 total Club Pilates locations by December 31, 2026. The slower growth rate aligns with the brand's shift toward franchise profitability and away from the rapid unit expansion that characterized 2019-2023. Club Pilates remains the largest dedicated Pilates franchise in North America by unit count, ahead of regional competitors such as StretchLab Pilates and independent mini-chains.

Same-Store Sales Decline 2.3% Year-Over-Year in Q4 2025

Same-store sales at Club Pilates locations open at least 13 months fell 2.3% in Q4 2025 compared to Q4 2024, according to Xponential's February 2026 investor presentation. The decline marks the third consecutive quarter of negative comps for the brand, following a 1.8% drop in Q3 2025 and a 1.2% decline in Q2 2025.

Management attributed the declines to consumer spending caution in discretionary wellness categories, increased competitive intensity in mature markets, and membership churn among customers acquired during pandemic-era promotional periods. The company noted that newer studios opened in 2024-2025 continue to ramp faster than the fleet average, suggesting that market saturation affects mature locations more than greenfield builds.

Private Equity Exit Strategy Accelerates Amid Franchise Headwinds

Xponential Fitness, backed by private equity firm L Catterton since 2017, has retained investment banks to explore a sale or public listing of the company's portfolio of nine fitness franchise brands, per a March 2026 Bloomberg report. The move comes as the firm approaches the typical 7-9 year hold period for PE-backed consumer services companies.

Potential buyers include larger fitness conglomerates, international franchisors seeking a North American footprint, and publicly traded wellness holding companies. The outcome will directly affect Club Pilates franchisees, as acquirers often renegotiate royalty structures, technology platform contracts, and marketing fund allocations during ownership transitions. The recent acquisition of Aligned Fitness by European fitness operator BasicFit, reported by Franchise Times in April 2026, signals continued consolidation in the boutique fitness segment.

Instructor Compensation Ranges $25-35 Per Class in Most Markets

Club Pilates franchise locations pay instructors an average of $25-35 per 50-minute group reformer class in most U.S. markets, based on aggregated Glassdoor salary data through March 2026 and job postings reviewed across major metropolitan areas. Higher-cost markets such as San Francisco, New York, and Los Angeles range $35-50 per class, while secondary markets trend toward the lower end of the range.

The pay structure creates ongoing recruiting challenges, particularly for franchisees seeking certified instructors with comprehensive training and client relationship skills. Independent studios often cannot match franchise convenience and class volume but may offer higher per-class rates, profit-sharing, or continuing education stipends to attract experienced teachers. The Pilates Alliance's 2025 compensation survey found that 62% of instructors teaching at franchise locations reported seeking additional income sources, compared to 48% of those teaching exclusively at independents.

What This Means for Studio Operators

Editorial analysis — not reported fact:

If you operate an independent studio in a market with multiple Club Pilates locations, the 6-7% EBITDA margin figure offers a useful competitive benchmark. Franchise operators face structural cost disadvantages (royalties, marketing fees, mandated technology stacks) that independent owners avoid. However, they gain brand recognition, centralized marketing, and playbook efficiencies that reduce trial-and-error.

The compensation data underscores the importance of differentiated instructor value propositions. If your pay structure is comparable to nearby franchises, you must compete on working conditions, scheduling flexibility, professional development, or teaching autonomy. If you pay materially less, you risk becoming a training ground for instructors who leave for franchise volume or higher-paying independents.

The pending private equity exit introduces uncertainty for franchise operators but potential opportunity for independents. Ownership transitions often distract franchise systems for 12-24 months, creating windows where independents can capture market share through aggressive local marketing and superior service consistency.

Sources & Further Reading

• Xponential Fitness Q4 2025 Earnings and Investor Relations — financial disclosures, unit counts, and same-store sales data
• Franchise Disclosure Document database — Item 19 financial performance representations for Club Pilates and other fitness franchises
• Bloomberg report on Xponential sale process — March 2026 coverage of PE exit strategy
• Franchise Times coverage of Aligned Fitness acquisition — April 2026 report on boutique fitness consolidation
• Glassdoor salary data for Club Pilates instructors — aggregated compensation reports through March 2026
• Pilates Alliance 2025 Compensation Survey — industry-wide instructor pay and working conditions

Editorial coverage of publicly reported industry developments. The Pilates Business has no commercial relationship with any companies named.