An ultrasonic sensing system includes: an amplifier including an input and an output; and an n-level comparator, coupled to the output of the amplifier, to compare an adjustable threshold voltage to an output signal from the output of the amplifier. N is greater than or equal to 1. The system also includes a noise power estimator, coupled to an output of the n-level comparator, to generate a noise power signal indicative of noise power of an input signal at the input of the amplifier. The system further includes a time-varying threshold circuit, coupled to the noise power estimator and the n-level comparator, to adjust the adjustable threshold voltage based on the noise power signal.