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So, my warmahordes club has been using the four armies available in the hordes and warmachine battle boxes. We share these four armies and regularly switch between them. As a club, we are looking to expand.
Should we add another army to the mix or should we begin adding units to each existing army? What units should I add to keep the armies balanced?

Add another army. It's far cheaper and more balanced then what would happen if you start adding units.

Add in Skorne Starter + Incindiarii (or Arcuarii) and Cryx Starter + Ogruns

Should line up well with what you get with the 2 player battle boxes

Well, here's my suggestions for leveling everything up a bit:

Khador: widowmakers to get to 25pts, Winterguard infantry box with the U/A, to go 35 and . Alternate caster: pButcher.

Menoth: Vassal and Choir (used as Min) to go to 25pts, Exemplar errants to go to 35, alternate caster: Reznik or pSeverius.

The hordes factions I know less about, but here's a good guess:

Legion: Deathstrider, Spell Martyr and Sheperd to 25, then another heavy kit to bring it up to 35 (you might need an extra solo depending on which heavy variant you use). Alternate Caster: perhaps eThagrosh

Circle: Shifting Stones W/ stonekeeper and... a gallows grove I guess to go to 25. Warpwolf stalker (well, the multi-kit) to go to 35. You might want to replace the two Argus with a unit of Druids. Alternate caster: maybe Kromac?

Just some ideas to quickly expand up to 25/35 points, though after that I would suggest just getting extra options to change things around and keep playing at the 25/35 level. They aren't power armies, but they'll give you some good games until you get used to everything. Any extra heavy kits you get (and if they're not glued yet, the heavies you got in the starters), I'd suggest magnetizing where possible, to give you options later on.