Club Pilates, the world’s largest Pilates brand by studio count, announced a master franchise agreement with DM Active Wellness Inc. on April 16, 2026. The deal gives DM Active Wellness the right to develop, operate, and license Club Pilates studios in the Philippines under the brand’s proven operating model and support system.
The agreement marks Xponential Fitness’s first foray into Southeast Asia, a region that has become a key growth area for the fitness industry. While the company has reported net losses of $45.6 million in Q4 2025 and a 2% revenue decline in FY 2025, it continues to pursue international expansion as a long‑term growth strategy. The Philippines was chosen for its rapidly growing middle class, increasing health‑and‑wellness spending, and a strong demand for boutique fitness experiences.
DM Active Wellness is a diversified lifestyle company with experience in health‑related ventures, positioning it to manage the operational demands of a Club Pilates franchise. The partnership will allow Xponential Fitness to leverage DM Active Wellness’s local market knowledge while maintaining brand consistency through the established Club Pilates operating model.
The expansion is part of Xponential Fitness’s broader strategy to diversify its revenue base beyond North America and Europe. Despite ongoing profitability challenges—net losses in FY 2024 and FY 2025 and a strategic review that could lead to a sale or merger—the company remains committed to scaling its global footprint. The Philippines deal is expected to contribute incremental revenue and help offset domestic headwinds, although specific financial projections for the new market have not yet been disclosed.
Analysts note that while the announcement is positive for Xponential Fitness’s international ambitions, the company’s stock remains under pressure due to persistent losses and liquidity concerns. The market reaction to the franchise agreement has been muted, reflecting broader skepticism about the company’s ability to turn around its financial performance in the near term.
Overall, the master franchise agreement represents a strategic milestone for Club Pilates and Xponential Fitness, expanding the brand’s presence into a high‑growth market while the parent company continues to navigate significant financial challenges. The deal underscores the company’s focus on long‑term growth through international expansion, even as it seeks to address profitability and liquidity issues at home.
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